scenario 1: the corner cafe\nthe corner cafe has the following information for its may 31 reconciliation:\nba…

scenario 1: the corner cafe\nthe corner cafe has the following information for its may 31 reconciliation:\nbalance per bank statement: $6,850\nbalance per books: $7,185\ndeposits in transit: $1,500\noutstanding checks: #121 for $800, #125 for $350\nbank service charge: $15\ninterest earned on account: $30\nwhat is the adjusted bank balance?

scenario 1: the corner cafe\nthe corner cafe has the following information for its may 31 reconciliation:\nbalance per bank statement: $6,850\nbalance per books: $7,185\ndeposits in transit: $1,500\noutstanding checks: #121 for $800, #125 for $350\nbank service charge: $15\ninterest earned on account: $30\nwhat is the adjusted bank balance?

Answer

Explanation:

Step1: Add deposits in transit

The bank statement balance needs to be adjusted for deposits in transit. So we add the deposits in - transit amount to the balance per bank statement. $6850 + 1500$

Step2: Subtract outstanding checks

We subtract the total amount of outstanding checks from the result of Step 1. The total of outstanding checks is $800 + 350=1150$. $(6850 + 1500)-1150$ $=8350 - 1150$ $=7200$

Answer:

$7200$