Question
The following information is collected on December 31, 2016. The company has a December 31 year-end. Only after the companys accountant receives the bank statement
The following information is collected on December 31, 2016. The company has a December 31 year-end. Only after the companys accountant receives the bank statement on Dec. 31, 2016, she realized that the total NSF (Non-sufficient fund) check amounts are $900.
The total EFT (Electronic Fund Transfer) collections and other deposits are $600. Among $600, $300 is already known by the companys accountant but only $200 is reflected in the companys cash balance before the completion of the bank reconciliation.
The total deposit in transit is $400, while total outstanding check amount is $300.
The total bank service charges and other hidden fees are $100. Among $100, $70 is already known by the companys accountant but only $10 is reflected in the companys cash balance before the completion of the bank reconciliation.
While there are no errors from the bank, the companys accountant incorrectly recorded and recognized $840 in cash when the company wrote the check of $480 in order to pay its suppler for the inventory purchase.
Assume that the unadjusted cash balance from the companys book is $650.
Using the information above, calculate the final adjusted cash balance.
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