To find the adjusted cash balance according to the company's records, we'll need to make several adjustments based on the reconciling information provided:
1. Correct the deposit error:
- The bank incorrectly recorded a deposit of [tex]$650 as $[/tex]560. We need to correct this by adding back the difference.
[tex]\[
\text{Corrected Deposit} = \$650 - \$560 = \$90
\][/tex]
2. Correct the check error:
- The company incorrectly recorded a check of [tex]$342 for $[/tex]410 as [tex]$140. We need to correct this by adjusting the recorded amount to the correct amount.
\[
\text{Corrected Check Difference} = (\$[/tex]410 - \[tex]$140) = \$[/tex]270
\]
3. Adjustments to the book balance:
- Starting with the book balance at May 31, which is [tex]$4500, we adjust for the erroneous check and the NSF check as follows:
\[
\text{Adjusted Book Balance} = \$[/tex]4500 - \[tex]$270 - \$[/tex]140 = \[tex]$4090 - \$[/tex]140 = \[tex]$3950
\]
So, the adjusted cash balance according to the company's records on May 31 is $[/tex]3,950.
