Asked by Isaiah Estilien on May 25, 2024
Verified
A check register shows a balance of $383.75. The bank statement shows a cash balance of $285.82. The check register shows an outstanding deposit of $142.93 and two outstanding checks of $37.41 and $12.65. The bank statement shows a service charge of $7.00 and an interest deposit of $1.94. Compute the adjusted cash balance of the check register and the bank statement.
Adjusted Cash Balance
The cash amount shown on a company's books after adjustments have been made for checks outstanding, deposits in transit, and other discrepancies.
Check Register
A record kept by an individual or institution to track checks written, deposits made, and the current balance of a checking account.
Bank Statement
A document issued by a bank detailing transactions, balances, and other financial information for a specific account over a period.
- Reconcile adjusted reserves by appending or subtracting service charges, interest, deposits, and checks from the balance as per the statement or check register.
- Ascertain and adjust discrepancies in balances between bank statements and check registers due to transactions not yet completed.
- Ascertain the impact of non-sufficient funds checks and banking discrepancies on personal account balances.
Verified Answer
HK
Learning Objectives
- Reconcile adjusted reserves by appending or subtracting service charges, interest, deposits, and checks from the balance as per the statement or check register.
- Ascertain and adjust discrepancies in balances between bank statements and check registers due to transactions not yet completed.
- Ascertain the impact of non-sufficient funds checks and banking discrepancies on personal account balances.