Question

Franklin Company deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of business on August 31, its Cash account shows a debit balance of $16,162. Franklin's August bank statement shows $16,637 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 The bank collected on a note receivable, not yet recorded by the company The adjusted cash balance should be: $ 5,400 $ 4,500 SBO $ 1,455 Multiple Choice $22.037 $12137 O O 517617 u $16,082

Answer 1

Correct Answer: $17,537
Franklin Company
Bank Reconciliation
Aug-31
Bank Statement Balance		16,637	Book Balance		16,162
Add:			Add:
Deposit in Transit	5,400		Note Collected	1,455
Deduct:			Deduct:
Outstanding Checks	4,500		Bank Charges	80
Adjusted Bank Balance		17,537	Adjusted Cash Balance		17,537