Question

Urban Bloom, Inc.'s books show an ending cash balance of $18,500 before preparing the bank reconciliation. Given the bank reconciliation shows outstanding checks of $4,700, deposits in transit of $3,700, NSF check of $270, and interest earned on the bank account of $180, the company's up-to-date ending cash balance equals:

Answer 1

$17,410

Step-by-step explanation:

Given that,

Ending cash balance = $18,500

Interest revenue = $180

Service charges EFT and NSF checks = $270

Deposit in transit = $3,700

Outstanding checks = $4,700

Company's up-to-date ending cash balance:

= Ending cash balance + Interest revenue - service charges EFT and NSF checks + Deposit in transit - Outstanding checks

= $18,500 + $180 - $270 + $3,700 - $4,700

= $17,410