Joseph Corporation needs to calculate their September 30 cash balance per books. The following information is available before any adjustments were made based on the monthly bank statement.
Outstanding checks $690
Balance per books $6,111
NSF check $275
Safe deposit box fee $45
To calculate the September 30 cash balance per books for Joseph Corporation, we need to adjust the balance per books for any outstanding checks and other adjustments based on the monthly bank statement.
1. Start with the balance per books: $6,111.
2. Subtract the outstanding checks: $6,111 - $690 = $5,421. This is the adjusted balance per books after accounting for outstanding checks.
3. Subtract the NSF check: $5,421 - $275 = $5,146. This is the adjusted balance per books after accounting for outstanding checks and the NSF check.
4. Subtract the safe deposit box fee: $5,146 - $45 = $5,101. This is the final cash balance per books for Joseph Corporation as of September 30.
To calculate the September 30 cash balance per books for Joseph Corporation, you need to take the balance per books and make adjustments for any outstanding checks, NSF checks, and safe deposit box fees.
Step 1: Start with the balance per books
The balance per books is $6,111.
Step 2: Subtract the outstanding checks
Outstanding checks are checks that have been issued but have not yet been cashed or cleared by the bank. In this case, the outstanding checks amount to $690. Subtract this amount from the balance per books:
$6,111 - $690 = $5,421
Step 3: Subtract the NSF check
NSF stands for Non-Sufficient Funds, which means the check was returned unpaid by the bank due to insufficient funds in the account. In this case, the NSF check is for $275. Subtract this amount from the previous result:
$5,421 - $275 = $5,146
Step 4: Subtract the safe deposit box fee
A safe deposit box fee is a charge for using a secure storage compartment in a bank. In this case, the safe deposit box fee is $45. Subtract this amount from the previous result:
$5,146 - $45 = $5,101
The September 30 cash balance per books for Joseph Corporation is $5,101.