Before reconciling to its bank statement, Lauren Cosmetics Corporation's - 10245

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yousafbhutta

yousafbhutta

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  • From: Business,
  • Posted on: Wed 23 May, 2012
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Request Description

 

Before reconciling to its bank statement, Lauren Cosmetics Corporation's general ledger had a month-end balance in the cash account of $9,750. The bank reconciliation for the month contained the following items:

 

 

 

  Deposits in transit

$930  

  Outstanding checks

$735  

  Interest earned

$20  

  NSF check returned to bank

$280  

  Bank service charge

$100  

 

 

 

Given the above information, what adjusted cash balance should Lauren report at month-end?

 

 

 

$10,000.

$9,140.

$9,390.

$8,820.

 

 

 

 

 

Solution Description

 

Before reconciling to its bank statement, Lauren Cosmetics Corporation's general ledger had a month-end balance in the cash account of $9,750. The bank reconciliation for the month contained the following items:

 

 

 

  Deposits in transit

$930  

  Outstanding checks