Gunnar Company gathered the following reconciling information in preparing its September bank reconciliation. Calculate the adjusted cash balance per books on September 30. $$\begin{array} { | l | r | }
\hline \text { Cash balance per books, } 9 / 30 & \$ 2,750 \
\hline \text { Deposits in transit } & 200 \
\hline \text { Notes receivable and interest collected by bank } & 630 \
\hline \text { Bank charge for check printing } & 50 \
\hline \text { Outstanding checks } & 1,250 \
\hline \text { NSF check } & 290 \
\hline
\end{array}$$
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.  $$\begin{array} { | l | r | } 
\hline \text { Cash balance per books, } 9 / 30 & \$ 2,750 \
\hline \text { Deposits in transit } & 200 \
\hline \text { Notes receivable and interest collected by bank } & 630 \
\hline \text { Bank charge for check printing } & 50 \
\hline \text { Outstanding checks } & 1,250 \
\hline \text { NSF check } & 290 \
\hline
\end{array}$$
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 for items that affect the book balance. Add the notes receivable and interest collected by the bank ($630) and subtract the bank charge for check printing ($50) and the NSF check ($290). This results in $2,750 + $630 - $50 - $290 = $3,040.

Gunnar Company Gathered the Following Reconciling Information in Preparing Its