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The following information was taken from a company's bank reconciliation at the end of the year: Bank balance.      $8000 Checks outstanding     $5800 Note collected by the bank     $1500 Service fee         $20 Deposits outstanding       $4000 NSF check          $300 What is the correct cash balance that should be reported in the company's balance sheet at the end of the year? A) $6.200 B) $10,200 C) $6.160 D) $7,400

The following information was taken from a company's bank reconciliation at the end of the year: Bank balance.      $8000 Checks outstanding     $5800 Note collected by the bank     $1500 Service fee         $20 Deposits outstanding       $4000 NSF check          $300 What is the correct cash balance that should be reported in the company's balance sheet at the end of the year? A) $6.200 B) $10,200 C) $6.160 D) $7,400

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter8: Fraud, Internal Controls, And Cash
Section: Chapter Questions
Problem 7EA: Using the following information, prepare a bank reconciliation. Bank balance: $3,678 Book balance:...
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1) The following information was taken from a company's bank reconciliation at the end of the year:

Bank balance.      $8000

Checks outstanding     $5800

Note collected by the bank     $1500

Service fee         $20

Deposits outstanding       $4000

NSF check          $300

What is the correct cash balance that should be reported in the company's balance sheet at the end of the year?

A) $6.200

B) $10,200

C) $6.160

D) $7,400

Expert Solution
Step 1

Ideally cash balance as per cashbook and bank balance as per bank statement must reconcile with each other. In case, there is any difference, then bank reconciliation statement must be prepared to reconcile both the balances. 

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