Franklin Company deposits all cash receipts on the day they are received and mak

Question

Franklin Company deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of business on August 31, its Cash account shows a debit balance of $14,662 Franklin's August bank statement shows $15,437 on deposit in the bank. Determine the adjusted cash balance using the following information: Deposit in transit Outstanding checks Bank service fees, not yet recorded by company The bank collected on a note receivable, not yet recorded by the company $4,950 $4,200 3 65 $1, 590 The adjusted cash balance should be: Multiple Chokce $16,252 $14,597 $16,187 $20,387 $11,237

Explanation / Answer

Correct option is =$16,187

Explanation:

Balance per bank=$15,437

Add deposit in transit=$4,950

Less outstanding checks=$4,200

Adjusted balance per bank=$16,187

Balance as per book=$14,662

Add note receivable=$1,590

Less bank service charges=$65

Adjusted balance per book=$16,187

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