1. A bank reconciliation revealed cash per the bank statement of $1,484, cash per company records of $1,681, bank charges of $11, deposits in transit of $317, outstanding checks of $221, and NSF checks of $90. The correct cash balance is?

(a)$1,490

(b)$1,580

(c)$1,777

(d)$1,479

2. When reconciling and ending cash balance per the company records to the correct adjusted cash balance, how would outstanding checks be handled?

A) Substracted from the balance per the company records.

B) Added to the balance per the company records.

C) Either A or B depending on the nature of the outstanding checks.

D) Outstanding checks would be ignored.

E) None of these.