Smith Co. has a checking account at Small Bank and an interest-bearing savings account at Big Bank. On December 31, Year 1, the bank reconciliations for Smith are as follows:

Big Bank
Bank balance	$150,000
Deposit in transit	5,000
Book balance	155,000

Small Bank
Bank balance	$1,500
Outstanding checks	(8,500)
Book balance	(7,000)

What amount should be classified as cash on Smiths balance sheet at December 31, Year 1?

A.

$151,500

B.

$155,000

C.

$156,500

D.

$148,00