Question

-6 Claybom 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 31s Cash account shows a deat balance of 519,525. Clayton's Maybank statement shows $17800 on deposit in the bank. Determine the adjusted cash balance using the following information Deposit in transit $5,950 Outstanding checks $5,100 Bank service fees, not yet recorded by company $ 50 A NSF check fron a customer, not yet recorded by the company $ 825 The adjusted cash balance should be Mut Choice $42675 521350

Answer 1

Answer: $18,650

Calculation:

Adjusted cash balance

Particulars	$
Bank Statement balance	17,800
Add: Deposits in transit	5,950
Less: Outstanding checks	5,100
Adjusted cash balance	18,650

Alternatively,

Adjusted cash balance

Particulars	$
Cash accounts balance	19,525
Less: Service fees	50
NSF check	825
Adjusted cash balance	18,650

All the best...