calculate the adjusted cash balance per books of abc co. given the following information.\nitem\tamount\nbala…

calculate the adjusted cash balance per books of abc co. given the following information.\nitem\tamount\nbalance per bank statement\t$10,005\nbalance per cash account book balance\t9,500\ndeposit in transit\t300\ninterest earned on the depositors balance\t55\nnsf check\t100\noutstanding checks\t850

calculate the adjusted cash balance per books of abc co. given the following information.\nitem\tamount\nbalance per bank statement\t$10,005\nbalance per cash account book balance\t9,500\ndeposit in transit\t300\ninterest earned on the depositors balance\t55\nnsf check\t100\noutstanding checks\t850

Answer

Explanation:

Step1: Identify adjustments for book balance

We start with the balance per cash - account book balance and make adjustments for items not yet recorded in the books.

Step2: Add interest earned

Interest earned on the depositor's balance is income that has not been recorded in the books yet. So we add it to the book balance. $9500 + 55$

Step3: Deduct NSF check

An NSF (non - sufficient funds) check is a check that has bounced and needs to be deducted from the book balance as it was previously recorded as a deposit but is now invalid. $9500+55 - 100$

Answer:

$9455$