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28 April, 21:27

In the process of reconciling its bank statement for April, Donahue Enterprises' accountant compiles the following information:

Cash balance per company books on April $ 6,185

Deposits in transit at month-end $ 1,480

Outstanding checks at month-end $ 800

Bank charge for printing new checks $ 135

Note receivable and interest collected by bank on Donahue's behalf $ 590

A check paid to Donahue during the month by a customer is returned by the bank as NSF $ 660

The adjusted cash balance per the books on April 30 is:

$3,700

$5,980

$5,660

$6,640

$7,980

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Answers (1)
  1. 28 April, 21:36
    0
    Option (B) is correct.

    Explanation:

    Adjusted cash balance as per books:

    = Cash balance per company books on April - Bank charge for printing new checks + Note receivable and interest collected by bank on Donahue's behalf - A check paid to Donahue during the month by a customer is returned by the bank as NSF

    = $6,185 - $135 + $590 - $660

    = $5980
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