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10 November, 11:40

Damon Company receives its monthly bank statement, which reports a balance of $1,850. After comparing this to the company's cash records, Damon's accountants determine that deposits outstanding total $3,600 and checks outstanding total $3,850.

Calculate the reconciled bank balance for cash.

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  1. 10 November, 12:10
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    The reconciled bank balance for the cash amounts to $1,600

    Explanation:

    The reconciled bank balance for the cash would be computed as:

    = Bank statement balance + Deposits outstanding - Checks outstanding

    where

    Bank statement balance amounts to $1,850

    Deposits outstanding amounts to $3,600

    Checks outstanding amounts to $3,850

    Putting the balances above:

    Reconciled bank balance for cash = $1,850 + $3,600 - $3,850

    = $5,450 - $3,850

    = $1,600

    Therefore, the adjusted bank statement balance amounts to $1,600
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