Question
i am confused of having two answers The following information was taken from a companys bank reconciliation at the end of the year: Company balance
i am confused of having two answers
The following information was taken from a companys bank reconciliation at the end of the year:
Company balance | $ 7,000 |
Checks outstanding | 5,500 |
Note collected by the bank | 1,500 |
Service fee | 20 |
Deposits outstanding | 4,000 |
NSF check from a customer | 200 |
What is the correct cash balance that should be reported in the company's balance sheet at the end of the year?
- $8,300
- $8,280
- $6,780
- $12,280 this one has the answer of b 8280
but this question has the answer of c 6200
The following information was taken from a company's bank reconciliation at the end of the year:
Bank balance $ 8,000 Checks outstanding $ 5,800 Note collected by the bank $ 1,500 Service fee $ 20 Deposits outstanding $ 4,000 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) $10,200. B) $7,400. C) $6,200. D) $6,160
why one uses Cash balance = Bank balance + Deposits outstanding - Checks outstanding and other don't?
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