Question

Marin Company’s general ledger indicates a cash balance of $22,340 as of September 30, 2021. Early in October Marin received a bank statement indicating that during September Marin had an NSF check of $1,500 returned to a customer and incurred service charges of $45. Marin also learned it had incorrectly recorded a check received from a customer on September 15 as $500 when in fact the check was for $550.

Required:
Calculate Marin’s correct September 30, 2016, cash balance.

Answer 1

Answer:

See below

Explanation:

With regards to the above, Marin's correct September 30, 2016 cash balance is computed below;

Balance as per cash book

$22,340

Add: Error in recording cash receipt

($550 - $500)

$50

Less: Bank service charge

($45)

Less: NSF check

($1,500)

Corrected cash book

$20,845