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Monica [59]
3 years ago
14

Hazelton Manufacturing prepares a bank reconciliation at the end of every month. At the end of May, the general ledger checking

account showed a balance of $1,360 and the bank statement showed a bank balance of $1,445. Outstanding checks totaled $350 and deposits in transit were $150. The bank statement listed service charges of $30 and NSF checks totaling $85. The corrected cash balance is: Multiple Choice 1. $1,130. 2. $1,160. 3. $1,245. 4. $1,445.
Business
1 answer:
Zepler [3.9K]3 years ago
5 0

Answer:

Option (3) $1,245

Explanation:

Data provided in the question:

General ledger checking account  balance = $1,360

Bank balance on bank statement = $1445

Deposits in transit = $150

Outstanding checks = $350

Bank statement service charges = $30

NSF checks = $85

Now,

The Correct cash balance will be

                  Bank balance on bank statement              $1,445

Add :          Back deposits in transit                               $150

Subtract :  Outstanding checks                                     $350

----------------------------------------------------------------------------------------------------

Correct balance                                                             $1,245

Hence,

Option (3) $1,245

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