on september 30, the bank statement of fine company showed a balance of $7,800. the following information…

on september 30, the bank statement of fine company showed a balance of $7,800. the following information was revealed by comparing the bank statement to the cash balance in fines accounting records: deposits in transit amounted to $3,150 outstanding checks amounted to $6,200 a $550 check was incorrectly drawn on fines account nsf checks returned by the bank were $750 bank service charge was $29 credit memo for $75 for the collection of one of the companys account receivable based on the above information, the true cash balance was:

on september 30, the bank statement of fine company showed a balance of $7,800. the following information was revealed by comparing the bank statement to the cash balance in fines accounting records: deposits in transit amounted to $3,150 outstanding checks amounted to $6,200 a $550 check was incorrectly drawn on fines account nsf checks returned by the bank were $750 bank service charge was $29 credit memo for $75 for the collection of one of the companys account receivable based on the above information, the true cash balance was:

Answer

Explanation:

Step1: Adjust for deposits in transit

Add deposits in transit to the bank - statement balance. The bank - statement balance is $7800 and deposits in transit are $3150. So, $7800 + 3150$. $7800+3150 = 10950$

Step2: Adjust for outstanding checks

Subtract outstanding checks from the result of Step 1. Outstanding checks are $6200. So, $10950−6200$. $10950 - 6200=4750$

Step3: Adjust for incorrect check

Add the amount of the incorrectly - drawn check back to the balance. The amount of the incorrect check is $550. So, $4750 + 550$. $4750+550 = 5300$

Step4: Adjust for NSF checks

Subtract NSF checks from the balance. NSF checks are $750. So, $5300−750$. $5300 - 750=4550$

Step5: Adjust for bank service charge

Subtract the bank service charge from the balance. The bank service charge is $29. So, $4550−29$. $4550 - 29 = 4521$

Step6: Adjust for credit memo

Add the credit memo amount to the balance. The credit memo amount is $75. So, $4521+75$. $4521+75 = 4596$

Answer:

$4596$