Question

he following information was taken from a company’s bank reconciliation at the end of the year: Bank balance $ 9,000 Checks outstanding $ 7,100 Note collected by the bank $ 1,600 Service fee $ 28 Deposits outstanding $ 5,300 NSF check $ 440 What is the correct cash balance that should be reported in the company's balance sheet at the end of the year?

Answer 1

Answer:

$7,200

Explanation:

Data given in the question

Bank balance $9,000

Checks outstanding $7,100

Note collected by the bank $1,600

Service fee $28

Deposits outstanding $5,300

NSF check $440

The computation of the correct cash balance is shown below:

= Bank balance + Deposits outstanding - Checks outstanding

= $9,000 + $5,300 - $7,100

= $7,200