Asked by Bethany Gordon on Jul 21, 2024

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At June 30 Yaddof Company has the following bank information: cash balance per bank $1650; outstanding checks $430; deposits in transit $527; credit memo for interest $75; bank service charge $10. What is Mareska's adjusted cash balance on June 30?

A) $1747
B) $1650
C) $1660
D) $1715

Deposits In Transit

Funds that have been received and recorded by a company but have not yet been recorded by the bank.

Outstanding Checks

Checks that have been written and recorded in the check register but have not yet been cashed or cleared by the bank.

Credit Memo

A document issued by a seller to a buyer, reducing the amount that the buyer owes to the seller under the terms of an earlier invoice.

  • Absorb the essentials and significance of conducting bank reconciliations.
  • Ascertain the categories of adjustments needed for reconciling bank statements and their justifications.
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Verified Answer

GH
Genevieve HazeltonJul 27, 2024
Final Answer :
A
Explanation :
Starting cash balance per bank: $1650
Add: Deposits in transit: $527
Adjusted balance: $2177
Subtract: Outstanding checks: $430
Adjusted balance: $1747
Add: Credit memo for interest: $75
Adjusted balance: $1822
Subtract: Bank service charge: $10
Final adjusted cash balance: $1747