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. $9,598b. $9,961c. $10,048d. $10,462

The correct option here is B) $9,961.

Explanation:

For taking out the adjusted cash balance at June 30 we will subtract the error in ledger amount and debit memo for monthly service charge and add the interest earned from the initial cash balance before any adjustment is made.

INITIAL CASH BALANCE = $10,012

(-) ERROR IN LEDGER      = $95 -$59

                                         = $36 ( this is the amount that Almond co's have to

                                                    pay more )

(+) INTEREST EARNED    = $35

(-) SERVICE CHARGES    = $50

ADJUSTED CASH BALANCE = $9961

0

Explanation:

Economic profit = accounting profit - implicit cost

Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives

accounting profit = revenue - explicit cost

Explicit cost includes the amount expended in running the business.

100,000 - (25,000 + 40,000 + 25,000) = 10,000

economic profit = 10,000 - 10,000 = 0