In the process of reconciling its bank statement for January, Maxi's Clothing's accountant compiles the following information: Cash balance per company books on January 30$6,825Deposits in transit at month-end$2,220Outstanding checks at month-end$730Bank service charges$46EFT automatically deducted monthly, not yet recorded by Maxi$800An NSF check returned on a customer account$475 The adjusted cash balance per the books on January 31 is: a)$7,724 b)$7,196 c)$6,663 d)$5,504

Cash book refers to the statement which comprises of all the receipts and payments of cash.

Answered: In the process of reconciling its bank…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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In the process of reconciling its bank statement for January, Maxi's Clothing's accountant compiles the following information:


Cash balance per company books on January 30	$	6,825
Deposits in transit at month-end	$	2,220
Outstanding checks at month-end	$	730
Bank service charges	$	46
EFT automatically deducted monthly, not yet recorded by Maxi	$	800
An NSF check returned on a customer account	$	475

The adjusted cash balance per the books on January 31 is:

a)$7,724

b)$7,196

c)$6,663

d)$5,504

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