Osborn Company's unadjusted book balance at June 30, 2014 is $7,800. The company's bank statement reveals bank service charges of $45. Two credit memos are included in the bank statement: one for $900 which represents a collection of an account receivable that the bank made for Osborn and one for $10 which represents the amount of interest that Osborn had earned on its interest-bearing checking account in June. Based on this information, Osborn's true cash balance is: A. $7,800. B. $8,705. C. $8,665. D. $8,795.
Business · High School · Tue Nov 03 2020
llm
Answered on
Given:
Unadjusted Book balance= $7800
Bank service charges = $45
Credit memos = $900 and $10
Determine the true cash balance.
Solution:
In order to determine the true cash balance, we simp;ly need to add the unadjusted book balance and credit memos and subtract the bank service charges.
= $7800 + $10 + $900 - $45
=$8710 - $45
=$8665
Final answer:
=$8665