In: Accounting
The balance in the Colt Company's Cash account on August 31 was $19,700, before the bank reconciliation was prepared. After examining the August bank statement and items included with it, the company's accountant found:
Checks outstanding | $4,300 |
Check from customer returned NSF | 140 |
Note collected by bank for the Colt Company | 1,200 |
Deposits outstanding | 1,800 |
Bank service fees | 60 |
What is the amount of cash that should be reported in the balance
sheet as of August 31?
rev: 02_28_2019_QC_CS-161029
A)$22,200.
B)$20,700.
C)$17,200.
D)$18,700.
calculate adjusted cash
cash before reconciliation | 19700 |
NSF Check | -140 |
Notes collected | 1200 |
Less: Bank service fees | -60 |
Adjusted cash balance | 20700 |
So answer is b) $20700