At June 30, Almond Co.'s cash balance was $10,012 before adjustments, while its ending bank statement balance was $10,772. Check number 101 was issued June 2 in the amount of $95, but was erroneously recorded in Almond's general ledger balance as $59. The check was correctly listed in the bank statement at $95. The bank statement also included a credit memo for interest earned in the amount of $35, and a debit memo for monthly service charges in the amount of $50. What was Almond's adjusted cash balance at June 30?
a. $9,598
b. $9,961
c. $10,048
d. $10,462
Answer:B
Choice "b" is correct. Almond's adjusted cash balance is computed as follows: Adjusted cash balance = Unadjusted cash balance +/- bank errors + credit memos - service charges                           Adjusted cash balance = $10,012 - ($95 - $59) + $35 - $50 = $9,961
Choice "a" is incorrect, per the above calculation.
Choice "c" is incorrect, per the above calculation. The difference between this answer and the correct answer is $87, and it was likely calculated as $10,012 + ($95 - $59).
Choice "d" is incorrect, per the above calculation.