Ask Question
1 March, 01:48

Clayborn 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 31, its Cash account shows a debit balance of $17,025. Clayborn's May bank statement shows $15,800 on deposit in the bank. Determine the adjusted cash balance using the following information: Deposit in transit$5,200 Outstanding checks$4,600 Bank service fees, not yet recorded by company$25 A NSF check from a customer, not yet recorded by the company$600 The adjusted cash balance should be:

+1
Answers (1)
  1. 1 March, 01:54
    0
    The adjusted cash balance should be: $17,600

    Explanation:

    Up date the Cash Balance in the cash book as follows:

    Note - Adjust on the items that exist on the bank statement but not recorded in the cash column of the cash book.

    Debit:

    Balance as at May 31 $17,025

    NSF check $600

    Totals $17,625

    Credit:

    Bank service fees $25

    Updated Cash Balance $17,600

    Totals $17,625
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Clayborn Company deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of business on ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers