Flynn company's monthly bank statement showed the ending balance of cash of $22,750. the bank reconciliation for the period showed an adjustment for a deposit in transit of $2,300, outstanding checks of $3,250, a nsf check of $870, bank service charges of $30 and the eft from a customer in payment of the customer's account of $1,670. what is the adjusted cash balance at the end of the month?

The adjusted cash balance at the end of the month is $21,800

Explanation:

Since we have to compute the cash balance but in the the question, bank statement balance is given . So, we have to do the back calculations. For that, first we have to find the adjusted bank balance which is shown below:

Adjusted bank balance = Ending bank balance + deposit in transit - outstanding checks

= $22,650 + $23,00 - $3,250

= $21,800

Now we have to find the balance before adjustment which is computed below:

= Adjusted balance + bank service charge + NSF check - EFT

= $21,800 + $30 + $870 - $1,670

= $21,030

So, the adjusted cash balance would be

= Cash book balance + EFT - bank service charges - NSF check

= $21,030 + $1,670 - $30 - $870

= $21,800

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