Gunnar Company gathered the following reconciling information in preparing its September bank reconciliation. Calculate the adjusted cash balance per books on September 30.? $$\begin{array} { | l | r | }
\hline \text { Cash balance per books, September } 30 & \$ 2,750 \
\hline \text { Deposits in transit } & 200 \
\hline \text { Notes receivable and interest collected by bank } & 630 \
\hline \text { Bank charge for check printing } & 50 \
\hline \text { Outstanding checks } & 1,250 \
\hline \text { NSF check } & 290 \
\hline
\end{array}$$
A) $5,130
B) $3,690
C) $3,040
D) $1,590

Question

Gunnar Company gathered the following reconciling information in preparing its September bank reconciliation. Calculate the adjusted cash balance per books on September 30.? $$\begin{array} { | l | r | } 
\hline \text { Cash balance per books, September } 30 & \$ 2,750 \
\hline \text { Deposits in transit } & 200 \
\hline \text { Notes receivable and interest collected by bank } & 630 \
\hline \text { Bank charge for check printing } & 50 \
\hline \text { Outstanding checks } & 1,250 \
\hline \text { NSF check } & 290 \
\hline
\end{array}$$
A) $5,130
B) $3,690
C) $3,040
D) $1,590

Quizplus · Accepted Answer

The adjusted cash balance per books is calculated by starting with the cash balance per books and then adjusting it for items that affect the book balance. Add the notes receivable and interest collected by the bank ($630) because this increases the book balance. Subtract the bank charge for check printing ($50) and the NSF check ($290) because these decrease the book balance. Deposits in transit and outstanding checks affect the bank balance, not the book balance, so they are not included in this calculation. Therefore, the adjusted cash balance per books is $2,750 + $630 - $50 - $290 = $3,040.

Gunnar Company Gathered the Following Reconciling Information in Preparing Its