Asked by harpreet ludher on May 12, 2024
Verified
A check register shows a balance of $1,447.36. The bank statement shows a cash balance of $1,572.53. The check register shows an outstanding deposit of $1,000.00 and two outstanding checks of $750.00 and $390.00. The bank statement shows a service charge of $6.75, a charge of $12.00 for printing checks, and an interest deposit of $3.92. Compute the adjusted cash balance of the check register and the bank statement.
Adjusted Cash Balance
The cash amount shown in a company's bank statement, adjusted for deposits in transit, outstanding checks, and bank errors.
Check Register
A personal record book or a digital log used to track checks written, deposits made, and current balance of a checking account.
Bank Statement
A document or electronic file provided by a bank summarizing transactions in an account over a certain period.
- Derive adjusted cash totals by supplementing or reducing service charges, interest income, deposits, and cheques from the figure provided in the statement or check register.
- Find and reconcile variances between the reported balances in bank statements and check registers due to transactions awaiting completion.
- Evaluate how returned checks and errors from banks affect the balance of personal accounts.
Verified Answer
CB
Learning Objectives
- Derive adjusted cash totals by supplementing or reducing service charges, interest income, deposits, and cheques from the figure provided in the statement or check register.
- Find and reconcile variances between the reported balances in bank statements and check registers due to transactions awaiting completion.
- Evaluate how returned checks and errors from banks affect the balance of personal accounts.