At August 31, Coffman Company has this bank information: cash balance per bank $6,450; outstanding checks $2,762; deposits in transit $1,700; and a bank service charge $20. Determine the adjusted cash balance per bank at August 31, 2018.

Question

Jenna Wang

Business

14 July, 17:11

At August 31, Coffman Company has this bank information: cash balance per bank $6,450; outstanding checks $2,762; deposits in transit $1,700; and a bank service charge $20. Determine the adjusted cash balance per bank at August 31, 2018.

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Answers (1)

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Max · Answer 1

The adjusted cash balance per bank at August 31, 2018 is $5,388

Explanation:

Given that,

Cash balance per bank - $6,450

Outstanding checks - $2,762

Deposits in transit - $1,700

Bank service charge - $20

By using this above information, we can calculate the adjusted cash balance per bank which is shown below.

Cash balance per bank - $6,450

Add: Deposits in transit - $1,700

Less : Outstanding checks - $2,762

Adjusted cash balance per bank - $5,388

Thus, The adjusted cash balance per bank at August 31, 2018 is $5,388

Note: The deposit would increase the cash balance so it would be added whereas the outstanding check (not cleared) would decrease the cash balance so it would be deducted