Question - A business has the following data as of January 31:
$15,850 Cash balance per bank statement
$17,500 Cash balance per company ledger
$1,650 Outstanding checks
$4,100 Deposits in transit
$50 Bank service charges for the month of January
$796 Cash collected by the bank acting as a collection agent of the company
Also, a $5 check paid to a vendor was erroneously recorded in the company books as $59.
1. Determine the adjusted cash ledger balance.
2. Determine the adjusted bank statement balance.