Table of contents

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1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

6. Internal Controls and Reporting Cash

Bank Reconciliation

Financial Accounting

6. Internal Controls and Reporting Cash

Bank Reconciliation

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Multiple Choice

XYZ Co. has a cash balance per books of $12,000. Outstanding checks total $1,500, and deposits in transit are $2,000. The bank statement shows a service charge of $50 and a customer’s NSF check of $200, both not yet recorded in the books. What is the adjusted cash balance per the books?

$13,250

$11,750

$12,250

$10,250

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Verified step by step guidance

Step 1: Start with the cash balance per books, which is $12,000.

Step 2: Deduct the bank service charge of $50 from the cash balance per books, as it has not yet been recorded in the books.

Step 3: Deduct the NSF (Non-Sufficient Funds) check of $200 from the cash balance per books, as it also has not yet been recorded in the books.

Step 4: Add the deposits in transit of $2,000 to the cash balance per books, as these are amounts that have been recorded in the books but not yet reflected in the bank statement.

Step 5: Deduct the outstanding checks totaling $1,500 from the cash balance per books, as these are checks issued by the company that have not yet cleared the bank.