Problem

Determining the true cash balance, starting with the unadjusted bank balanceThe following...

Determining the true cash balance, starting with the unadjusted bank balance

The following information is available for Stone Company for the month of August:

1. The unadjusted balance per the bank statement on August 31 was S56.300.

2. Deposits in transit on August 31 were S2.600.

3. A debit memo was included with the bank statement for a service charge of S20.

4. A $4,925 check written in August had not been paid by the bank.

5. The bank statement included a $ 1,000 credit memo for the collection of a note. The principal of the note was $950, and the interest collected was $50.

Required

Determine the true cash balance as of August 31. (Hint: It is not necessary to use all of the preceding items to determine the true balance.)

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