On November 30, Hernandez Company's bank statement showed an ending balance of $37,341. The following information is available about Hernandez's account:1. Debit memo in bank statement for bank service charge, $392. Deposit in transit, $2,9883. Outstanding checks, $3,1564. Customer's NSF check for $723 was returned with the bank statementRequired:a) Determine the true cash balance as of November 30.b) Determine the unadjusted balance of the company's Cash account as of November 30.
What will be an ideal response?
a) $37,173
b) $37,935
a) True cash balance = Unadjusted bank balance of $37,341 + Deposit in transit of $2,988 ? Outstanding checks of $3,156 = $37,173
b) True cash balance of $37,173 = Unadjusted book balance ? Debit memo of $39 ? NSF check of $723 NSF
Unadjusted book balance = $37,173 + $39 + $723 = $37,935
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