Determining the true cash balance starting with the


Determining the true cash balance, starting with the unadjusted book balance

Smith Company had an unadjusted cash balance of $8,550 as of April 30. The company's bank statement, also dated April 30, included a $100 NSF check written by one of Smith's customers. There were $920 in outstanding checks and $250 in deposits in transit as of April 30. According to the bank statement, service charges were $75, and the bank collected a $700 note receivable for Smith. The bank statement also showed $12 of interest revenue earned by Smith.

Required

Determine the true cash balance as of April 30.

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Accounting Basics: Determining the true cash balance starting with the
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