The balance in the Colt Company's Cash account on August 31 was $19,700, before the bank...

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.

Solutions

Expert Solution

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

ekkarill92 answered 1 year ago

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