Question

TB MC Qu. 06-137 Clayborn Company deposits... Clayborn Company deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of business on May 31, its Cash account shows a debit balance of $17,025. Clayborn's May bank statement shows $15.800 on deposit in the bank. Determine the adjusted cash balance using the following information: Deposit in transit Outstanding checks Bank service fees, not yet recorded by company A NSF check from a customer, not yet recorded by the company $5,200 $4,600 $ 25 $ 600

Answer 1

Clayborn Company
Bank Reconciliation
May 31
Bank statement balance		15,800	Book balance		17,025
Add:			Add:
Deposit in transit	5,200
		5,200
		$21,000			$17,025
Deduct:			Deduct:
Outstanding check	-4,600		Bank service charge	-25
		-4,600	NSF returned	-600
					-625
Adjusted bank balance		$16,400	Adjusted book balance		$16,400

First option is the correct option.

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