Asked by Kerri Wilson on Apr 26, 2024
Verified
A bank statement shows a balance of $1,471.84. The check register of the account owner shows outstanding checks of $325.55, $50.30, and $14.46 and an outstanding deposit of $4,320.01. Compute the adjusted cash balance of the bank statement.
Adjusted Cash Balance
The cash balance reported on a company's financial statements, modified for checks that have not yet cleared or deposits in transit.
Outstanding Checks
Checks that have been written and recorded in a ledger but have not yet been cashed or cleared by the bank.
Outstanding Deposit
Funds that have been deposited but not yet credited to the depositor's account.
- Gauge revised financial balances by including or removing service fees, interest payments, deposits, and cheques based on the balance in the statement or check catalogue.
- Detect and mitigate differences between balances documented in bank statements and those in check registers, due to transactions that are outstanding.
Verified Answer
JD
Learning Objectives
- Gauge revised financial balances by including or removing service fees, interest payments, deposits, and cheques based on the balance in the statement or check catalogue.
- Detect and mitigate differences between balances documented in bank statements and those in check registers, due to transactions that are outstanding.