Asked by Katerina Yanushefski on Jun 24, 2024
Verified
A check register shows a balance of $346.71. The bank statement shows that two checks of $42.34 and $56.25, deposited by the account owner, were drawn against a closed account and were returned as invalid. A charge for $2.00 for each deposit was also deducted by the bank because of the returns. Compute the adjusted cash balance of the check register.
Adjusted Cash Balance
An amount reflecting the true cash balance after accounting for outstanding checks or deposits in transit.
Check Register
A check register is a record book used to track checks written, deposits made, and the current balance of a checking account.
Closed Account
A bank or credit account that has been terminated, either by the customer or the financial institution, often due to inactivity or zero balance.
- Reconcile readjusted cash volumes by including or excluding service charges, interest receivables, deposits, and checks from the balance furnished in the statement or check register.
- Examine and correct disparities between bank statement and check register balances that arise from transactions not yet processed.
- Identify the effect of returned checks and bank errors on personal account balances.
Verified Answer
TM
Learning Objectives
- Reconcile readjusted cash volumes by including or excluding service charges, interest receivables, deposits, and checks from the balance furnished in the statement or check register.
- Examine and correct disparities between bank statement and check register balances that arise from transactions not yet processed.
- Identify the effect of returned checks and bank errors on personal account balances.