Candy Claws Company gathered the following reconciling information in preparing its August bank reconciliation: $\begin{array}{lr}
\text { Cash balance per books, } 8 / 31 & \$ 19,500 \
\text { Deposits in transit } & 900 \
\text { Notes receivable and interest collected by bank } & 4,800 \
\text { Bank charge for check printing } & 120 \
\text { Outstanding checks } & 12,000 \
\text { NSF check } & 1,020
\end{array}$ The adjusted cash balance per books on August 31 is
A) $11,160.
B) $12,060.
C) $23,160.
D) $24,060.

Question

Quizplus · Accepted Answer

The adjusted cash balance is calculated as follows: Start with the cash balance per books of $19,500, add the notes receivable and interest collected by the bank of $4,800, subtract the bank charge for check printing of $120, and subtract the NSF check of $1,020. This results in an adjusted cash balance of $23,160.

Candy Claws Company Gathered the Following Reconciling Information in Preparing