Question

A company's bank statement shows a cash balance of $4,210. Comparing the company's cash records with the monthly bank statement reveals several additional cash transactions such as checks outstanding of $2,100, NSF check of $230, interest earned of $36, service fee of $46, and a check for $180 recorded twice by the company. Calculate the correct balance of cash?

Answer 1

Step-by-step explanation:

Based on the information that have been provided in the question above, the correct balance of cash will be calculated as the difference between the bank balance that was shown in the bank statement and the checks that was outstanding. This will be:

= $4210 - $2100

= $2110

Therefore, the correct balance of cash will be $2110.