7.Franklin Company deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of business on August 31, its Cash account shows a debit balance of $20,662. Franklin's August bank statement shows a $20,237 balance in the bank. Determine the adjusted cash balance using the following information:

Deposit in transit	$ 6,750
Outstanding checks	$ 5,400
Bank service fees, not yet recorded by company	$ 125
The bank collected on a note receivable, not yet recorded by the company	$ 1,050

The adjusted cash balance should be:

Multiple Choice

$26,987

$14,837.

$21,712

$20,537

$21,587

10.The following information is available for Birch Company at December 31:

Cash in registers	$ 2,970
Investment maturing in 9 years	$ 16,800
Accounts receivable	$ 1,925
Cash in bank account	$ 24,231
Accounts payable	$ 830
Cash in petty cash fund	$ 380
Inventory of postage stamps	$ 36
U.S. Treasury bill maturing in 15 days	$ 11,800

Based on this information, Birch Company should report Cash and Cash Equivalents on December 31 of:

Multiple Choice

$44,417

$56,181

$42,136

$40,476

$39,381