Nilson Company gathered the following reconciling information in preparing its August bank reconciliation: $\begin{array}{lr}
\text { Cash balance per books, } 8 / 31 & \$ 21,000 \
\text { Deposits in transit } & 900 \
\text { Notes receivable and interest collected by bank } & 5,100 \
\text { Bank charge for check printing } & 120 \
\text { Outstanding checks } & 12,000 \
\text { NSF check } & 1,020
\end{array}$ The adjusted cash balance per books on August 31 is
A) $24,960.
B) $24,060.
C) $13,800.
D) $14,760.

Question

Quizplus · Accepted Answer

The adjusted cash balance per books is $24,960. This is calculated by adding the deposits in transit and the notes receivable and interest collected by the bank to the cash balance per books, and then subtracting the bank charge for check printing, the outstanding checks, and the NSF check.

Nilson Company Gathered the Following Reconciling Information in Preparing Its