While preparing the April 30th bank reconciliation for the checking account for Calvin Corporation, the accountant identified the following items:
Calvin's balance according to the general ledger: $15,000
Outstanding checks: 2,500
Bank service charge: 15
A customer's NSF check returned by the bank: 100
What amount will Calvin report as its adjusted cash balance at April 30th?
So how much interest did it calculate in a percentage so how much would that be for the pay settlement
To determine Calvin Corporation's adjusted cash balance at April 30th, we need to consider the following items:
1. Calvin's balance according to the general ledger: $15,000
2. Outstanding checks: $2,500
3. Bank service charge: $15
4. NSF (Non-Sufficient Funds) check returned by the bank: $100
To calculate the adjusted cash balance, we start with Calvin's balance according to the general ledger, which is $15,000.
Next, we deduct the outstanding checks, which are checks that have been issued by Calvin but have not yet been presented for payment and cleared by the bank. In this case, the outstanding checks amount to $2,500. Subtracting this amount from the general ledger balance, we have:
$15,000 - $2,500 = $12,500
After that, we need to consider the bank service charge. This is a fee charged by the bank for its services. In this case, the bank service charge is $15. Subtracting this amount from the previous adjusted balance, we have:
$12,500 - $15 = $12,485
Lastly, we need to include the NSF check returned by the bank. An NSF check is a check that the bank has not honored due to insufficient funds in the account of the customer who issued the check. In this case, the NSF check amount is $100. Subtracting this amount from the previous adjusted balance, we have the final adjusted cash balance:
$12,485 - $100 = $12,385
Therefore, Calvin Corporation will report an adjusted cash balance of $12,385 at April 30th.