Wynn Company developed the following reconciling information in preparing its September bank reconciliation: Determine the cash balance per books (before adjustments) for Wynn Company.
A) $13,700.
B) $24,000.
C) $5,700.
D) $20,000.

Question

Wynn Company developed the following reconciling information in preparing its September bank reconciliation:  Determine the cash balance per books (before adjustments) for Wynn Company.
A) $13,700. 
B) $24,000. 
C) $5,700. 
D) $20,000.

Quizplus · Accepted Answer

The cash balance per book (before adjustments) can be calculated by adding the deposits in transit and the outstanding checks to the balance per bank, and then subtracting any bank errors. Based on the reconciling information given in the question, the cash balance per bank is $29,200. Adding the deposits in transit of $6,000 and subtracting the outstanding checks of $29,500 gives an adjusted balance of $5,700. This is the cash balance per books (before adjustments). Therefore, the correct answer is C.

Wynn Company Developed the Following Reconciling Information in Preparing Its