Question

Somerset Company's Cash account shows an ending balance of $800. The bank statement shows a $25 service charge and an NSF check for $100. A $210 deposit is in transit, and outstanding checks total $430.
What is Somerset's adjusted cash balance?
A. $455
B. $580
C. $675
D. $925

Answer 1

Answer:

A. $455

Explanation:

The account is as following:

 $800.00 (ending balance)

-   $25.00 (service charge)

- $100.00 (NSF check)

+ $210.00 (deposit in transit)

-  $430.00 (outstanding checks)

__________________________

+ $455.00 (adjusted cash balance)