Question

Jamison Company gathered the following reconciling information in preparing its June bank reconciliation: Cash balance per bank, June 30 $10,950 Note receivable collected by bank 7,018 Outstanding checks 5,996 Deposits in transit 4,255 Bank service charge 164 NSF check 1,854 Using the above information, determine the cash balance per books (before adjustments) for Jamison Company. a.$4,209 b.$21,201 c.$14,209 d.$9,209

Answer 1

Answer:

Option (a) is correct.

Explanation:

Given that,

Cash balance per bank, June 30 = $10,950

Note receivable collected by bank = $7,018

Outstanding checks = 5,996

Deposits in transit = $4,255

Bank service charge = $164

NSF check = $1,854

Cash balance per books (before adjustments) for Jamison Company:

= Cash balance per bank, June 30 - Note receivable collected by bank - Outstanding checks + Bank service charge + NSF check + Deposits in transit

= $10,950 - $7,018 - $5,996 + $164 + $1,854 + $4,255

= $4,209