Answer:
Adjusted Bank Balance $1,020
Explanation:
The question is incomplete, therefore, the complete question is as follows:
Shady Mills Company Cash account shows an ending balance of $1200. The bank statement shows an ending balance of $770. Additional information includes:
$30 Service Charge
$300 Deposit in transit
$50 Outstanding Checks
What is the adjusted bank balance?
Solution:
The process for determining the Adjusted Bank Balance is a simple one, basically, we consider how the additional information affects the discrepancies between both the Cash balance and the bank balance.
The Calculation is as follows:
The Ending Bank Balance $770
Add: Deposit in Transit $300
Less: Outstanding Checks ( $50)
Adjusted Bank Balance $1,020
Note that the Service Charge will be part of the adjustment of the Cash Balance.
