As of June 30, Year 1, the bank statement showed an ending balance of $19,500. The unadjusted Cash account balance was $15,200. The following information is available:
1. Deposit in transit: $2,400.
2. Credit memo in bank statement for interest earned in June: $30.
3. Outstanding check: $6,690.
4. Debit memo for service charge: $20.
Required:
Determine the true cash balance by preparing a bank reconciliation as of June 30, Year 1, using the preceding information.
Note: Negative amounts should be indicated with minus sign.
Bank Reconciliation
Unadjusted bank balance 6/30/Year 1
Add: Deposit in transit
Less: Outstanding check
True cash balance 6/30/Year 1
Unadjusted book balance 6/30/Year 1
Add: Credit memo for interest earned
Less: Debit memo for service charge
True cash balance 6/30/Year 1
