Question

1. Oxley Company gathered the following reconciling information in preparing its June Bank Reconciliation:

   Cash balance per General Ledger, June 30	$4,119
   Deposits in Transit	$627
   Notes Receivable and Interest collected by bank	$1,216
   Bank Charge for check printing	$35
   Outstanding Checks	$1,719
   NSF Check	$1,276

   What is the Adjusted Cash Balance on June 30?

Answer 1

Adjusted Cash Balance on June 30 = $ 4,024

Working:

Cash balance according to company`s records		$          4,119
Add:
Notes Receivables and Interest collected by bank	$          1,216	$          1,216
Deduct:
Bank Charges for check printing	$              (35)
NSF Check	$        (1,276)
	$                 -	$        (1,311)
Adjusted Cash Balance on June 30		$          4,024

Notes:

1) Deposits in transit and outstanding checks are not considered in calculations.