Smith Company had an unadjusted cash balance of $8,550 as of April 30. The companys bank statement,

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Smith Company had an unadjusted cash balance of $8,550 as of April 30. The company’s bank statement, also dated April 30, included a $100 NSF check written by one of Smith’s customers. There were $920 in outstanding checks and $250 in deposits in transit as of April 30. According to the bank statement, service charges were $75, and the bank collected a $700 note receivable for Smith. The bank statement also showed $12 of interest revenue earned by Smith.
Required
Determine the true cash balance as of April 30. (Hint: It is not necessary to use all of the preceding items to determine the true balance.)

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Survey of Accounting

ISBN: 978-0073379555

2nd edition

Authors: Edmonds, old, Mcnair, Tsay

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