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The bank statement reported an ending balance of $43,860 after deducting $660 in service charges and an addition of $13,500 for a note collected by the bank on the Cherokee Company's behalf. The company books reported an ending balance of $29,070, and determined that deposits in transit equal $16,800 and outstanding checks equal $18,750.

What is the adjusted cash balance?
Select one:
A. $21,120
B. $41,910
C. $16,800
D. $35,910
Lakeside Company is holding a $18,000, 90-day, 6% note receivable, dated December 1, 2019. The journal entry to record accrued interest at the end of its fiscal year on December 31, 2019 will include a:
Select one:
A. Credit note receivable for $18,000
B. Credit interest income for $270
C. Debit to interest receivable for $90
D. Debit cash for $18,270

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Answer:

Question 1

B. $41,910

Question 2

C. Debit to interest receivable for $90

Explanation:

Question 1

Calculation for the adjusted cash balance

Using this formula

Adjusted cash balance = Cash balance per books +Deposits in transit - Outstanding checks

Let plug in the formula

Adjusted cash balance= $43,860+$16,800-$18,750

Adjusted cash balance= $41,910

Therefore Adjusted cash balance is $41,910

Question 2

Based on the information given The Appropriate journal entry to record accrued interest at the end of its fiscal year on December 31, 2019 will include a:

Debit to interest receivable for $90 which is calculated as:

Interest receivable=[(6%*$18,000*90days/360)/3]

Interest receivable=$270/3

Interest receivable=$90

Adjust the cash balances in the business bank account by subtracting monthly fees, overdraft charges, or adding interest. The amount of interest receivable is the amount of interest earned but not yet collected in cash.

1. The computation for the adjusted cash balance:

[tex]\text{Adjusted cash balance = Cash balance per books +Deposits in transit - Outstanding checks}[/tex]

[tex]\text{Adjusted cash balance}= 43,860+16,800-18,750[/tex] [tex]\text{Adjusted cash balance}= 41,910[/tex]

Therefore, option C, $41,910 is the adjusted cash balance and is the correct answer for Question 1.

2.

[tex]\text{Interest receivable}=[\frac{0.06 \text{ X } 18,000 \text{ X } 90 \text{ days}}{360})/3][/tex]

[tex]\text{Interest receivable}= \frac{270}{3}[/tex]

[tex]\text{Interest receivable=90}[/tex]

Therefore, option C, interest receivable for $90 is the correct answer for Question 2.

For more information regarding the computation, refer to the link:

https://brainly.com/question/15230862?referrer=searchResults

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