Question

The following information is available for Trinkle Company for the month of June:

1. The unadjusted balance per the bank statement on June 30 was $52,985.
2. Deposits in transit on June 30 were $2,860.
3. A debit memo was included with the bank statement for a service charge of $28.
4. A $4,596 check written in June had not been paid by the bank.
5. The bank statement included a $1,250 credit memo for the collection of a note. The principal of the note was $1,220, and the interest collected amounted to $30.

Determine the true cash balance as of June 30.

Answer 1

Answer:

True Cash Balance            $ 51,221

Explanation:

Trinkle Company

The unadjusted balance per the bank statement on June 30 was $52,985

Add

Deposit in Transit                     $ 2860

Less

Outstanding Check            $ 4596

Collection Charges             $ 28

True Cash Balance            $ 51,221

The following are not included in the bank statement as they are used in reconciling the balance of the cash book.

Interest Earned                         $ 30 (not included)

Notes receivable by Bank       $ 1220 ( not included)