Question

The April 30 bank statement for Trimble Corporation shows an ending balance of $40,921. The unadjusted cash account balance was $34,350. The accountant for Trimble gathered the following information: There was a deposit in transit for $5,480. The bank statement reports a service charge of $189. A credit memo included in the bank statement shows interest earned of $895. Outstanding checks totaled $14,115. The bank statement included a $2,770 NSF check deposited in April. What is the true cash balance as of April 30

Answer 1

Answer: $32,286

Explanation:

To adjust the cash balance, it is faster to use the bank statement balance and then adjust that for the deposits in transit and the outstanding checks.

True cash balance = Bank statement balance + Deposits in transit - Outstanding checks

= 40,921 + 5,480 - 14,115

= $32,286