Ryan Company deposits all cash receipts on the day they are received and makes all cash payments by check. Ryan's June bank statement shows $29,361 on deposit in the bank. Ryan's comparison of the bank statement to its cash account revealed the following: Deposit in transit 3,650 Outstanding checks 1,431 Additionally, a $49 check correctly written and recorded by the company was recorded by the bank as a $94 deduction. The adjusted cash balance per the bank records should be: Multiple Choice $31,580 $31,535 $34,487 $31,625 $24,325

$31,625

Explanation:

To find out the adjusted cash balance per the bank records we will do the following,

First we'll add the deposits in transfer as the bank account already has those,

= 29,361 + 3,650

= $33,011

The bank incorrectly increased a check issued to $94 from $49 so we add the difference to above amount

= 33,011 + (94 - 49)

= $33,056

Then finally we subtract the outstanding checks.

= 33,056 - 1,431

= $31,625

The adjusted cash balance per the bank records should be $31,625.

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