The following information relates to the company's May bank reconciliation: Bank statement balance $5,000 Unadjusted cash balance from the company records ? Deposit in transit 1,000 Outstanding checks 500 Bank service charges 50 Interest earned on the bank account 10 Customer's NSF check returned by the bank 25 In addition, a check issued was recorded in the accounting records as $1,200 but the correct amount as recorded by the bank was only $1,000. What is the unadjusted cash balance according to the company's records on May 31? a. $4,865 b. $5,500 c. $5,365 d. $5,000
The following information relates to the company's May bank reconciliation: Bank statement balance $5,000 Unadjusted cash balance from the company records ? Deposit in transit 1,000 Outstanding checks 500 Bank service charges 50 Interest earned on the bank account 10 Customer's NSF check returned by the bank 25 In addition, a check issued was recorded in the accounting records as $1,200 but the correct amount as recorded by the bank was only $1,000. What is the unadjusted cash balance according to the company's records on May 31? a. $4,865 b. $5,500 c. $5,365 d. $5,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following information relates to the company's May bank reconciliation:
| Bank statement balance | $5,000 |
| Unadjusted cash balance from the company records | ? |
| Deposit in transit | 1,000 |
| Outstanding checks | 500 |
| Bank service charges | 50 |
| Interest earned on the bank account | 10 |
| Customer's NSF check returned by the bank | 25 |
In addition, a check issued was recorded in the accounting records as $1,200 but the correct amount as recorded by the bank was only $1,000.
What is the unadjusted cash balance according to the company's records on May 31?
a. $4,865
b. $5,500
c. $5,365
d. $5,000
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