Question

The following information is available for Trinkle Company for the month of June 

1. The unadjusted balance per the bank statement on June 30 was $81,500.

2. Deposits in transit on June 30 were $3,150

3. A debit memo was included with the bank statement for a service charge of $40.

4. A $5,611 check written in June had not been paid by the bank

5. The bank statement included a $950 credit memo for the collection of a note. The principal of the note was $900, and the interest collected amounted to $50 eBox

Required Determine the true cash balance as of June 30. (Hint it is not necessary to use all of the preceding items to determine the true balance) 

Answer 1

Solution:

True cash balance = unadjusted balance as per bank statement + deposits in transit - outstanding checks

= 81500 + 3150 - 5611

= $79,039