In preparing its bank reconciliation for the month of April 2014, Franklin, Inc. has available the following information. What should be the adjusted cash balance at April 30, 2014?
A) $59,055.
B) $58,410.
C) $57,735.
D) $57,705.

Question

In preparing its bank reconciliation for the month of April 2014, Franklin, Inc. has available the following information.  What should be the adjusted cash balance at April 30, 2014?
A) $59,055. 
B) $58,410. 
C) $57,735. 
D) $57,705.

Quizplus · Accepted Answer

Starting balance: $56,000
Add deposits in transit:
- April 28: $1,400
- April 30: $3,500

Total deposits in transit: $4,900

Adjusted balance: $56,000 + $4,900 = $60,900

Subtract outstanding checks:
- #1234: $1,500
- #1237: $4,000
- #1240: $750

Total outstanding checks: $6,250

Adjusted balance: $60,900 - $6,250 = $54,650

Add interest earned: $760

Adjusted balance: $54,650 + $760 = $58,410

Therefore, the adjusted cash balance at April 30, 2014 should be $58,410.

In Preparing Its Bank Reconciliation for the Month of April