i am confused of having two answers The following information was taken from a...
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Accounting
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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