The following information is available for Trinkle Company for the month of June:

The unadjusted balance per the bank statement on June 30 was $59,473.
Deposits in transit on June 30 were $2,545.
A debit memo was included with the bank statement for a service charge of $4.
A $3,714 check written in June had not been paid by the bank.
The bank statement included a $500 credit memo for the collection of a note. The principal of the note was $475, and the interest collected amounted to $25.
Required:
Determine the true cash balance as of June 30. (Hint: It is not necessary to use all of the preceding items to determine the true balance.)

To determine the true cash balance for Trinkle Company as of June 30, we need to adjust the unadjusted bank statement balance by considering the deposits in transit, outstanding checks, and any bank errors or adjustments noted. Here are the steps:

1. **Start with the unadjusted balance per the bank statement**:  
   \[ \text{Unadjusted balance per bank statement} = \$59,473 \]

2. **Add deposits in transit**: These are deposits made by the company but not yet recorded by the bank.
   \[ \text{Deposits in transit} = \$2,545 \]

3. **Subtract outstanding checks**: These are checks written by the company that have not yet been cleared by the bank.
   \[ \text{Outstanding checks} = \$3,714 \]

The debit memo for the service charge and the credit memo for the note collection are not adjustments to the bank balance but rather to the company's book balance.

Now, let's calculate the true cash balance:

\[
\text{True cash balance} = \text{Unadjusted balance per bank statement} + \text{Deposits in transit} - \text{Outstanding checks}
\]

\[
\text{True cash balance} = \$59,473 + \$2,545 - \$3,714
\]

\[
\text{True cash balance} = \$58,304
\]

So, the true cash balance as of June 30 is $ \$58,304 $.

Would you like any additional details or explanations?

Here are 5 related questions you might want to ask next:
1. How do you adjust the book balance for bank reconciliation?
2. What is the purpose of a bank reconciliation?
3. How do you handle errors found during a bank reconciliation?
4. What are the common causes of differences between bank statements and book balances?
5. Can you explain the impact of credit and debit memos on bank reconciliation?

**Tip:** Regularly performing bank reconciliations can help detect and prevent errors or fraudulent activities in your bank account.

Learn how to calculate the true cash balance for Trinkle Company as of June 30, incorporating deposits in transit and outstanding checks. This problem involves practical application of bank reconciliation techniques. Suitable for professionals in accounting and finance.

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