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After posting the required adjusting journal entries from the bank reconciliation below, show what the balance of the Cash account in ABC Co.'s general ledger will be by selecting the correct answer below.  Bank balance$1,005Book balance$1,250Add: Deposit in transit300Add: Interest earned50Less: Outstanding checks185Less: NSF check - J. Roberts180Multiple choice question.Cash will have a balance of $1,250.Cash will have a balance of $1,120.Cash will have a balance of $1,005.Cash will have a balance of $1,300.

Question

After posting the required adjusting journal entries from the bank reconciliation below, show what the balance of the Cash account in ABC Co.'s general ledger will be by selecting the correct answer below.  Bank balance1,005Bookbalance1,005Book balance1,250Add: Deposit in transit300Add: Interest earned50Less: Outstanding checks185Less: NSF check - J. Roberts180Multiple choice question.Cash will have a balance of 1,250.Cashwillhaveabalanceof1,250.Cash will have a balance of 1,120.Cash will have a balance of 1,005.Cashwillhaveabalanceof1,005.Cash will have a balance of 1,300.

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Solution

To find the correct balance of the Cash account, we need to adjust the book balance based on the information given in the bank reconciliation.

Here's how:

  1. Start with the book balance: $1,250
  2. Add the deposit in transit: 1,250+1,250 + 300 = $1,550
  3. Add the interest earned: 1,550+1,550 + 50 = $1,600
  4. Subtract the outstanding checks: 1,600−1,600 - 185 = $1,415
  5. Subtract the NSF check: 1,415−1,415 - 180 = $1,235

So, the correct answer is: Cash will have a balance of $1,235. However, this option is not given in the multiple choice question. There might be a mistake in the question or the options provided.

This problem has been solved

Similar Questions

Select all that applyThe bank reconciliation of ABC Co. is provided below. Demonstrate the required adjusting entries needed to update the Cash account in the general ledger by selecting the correct entries below.  Bank balance$1,005Book balance$1,250Add: Deposit in transit300Add: Interest earned50Less: Outstanding checks185Less: NSF check - J. Roberts180Multiple select question.Debit NSF Expense $180 and credit Cash $180.Debit Interest Revenue $50 and credit Cash $50.Debit Cash $50 and credit Interest Revenue $50.Debit Cash $300 and credit Revenues $300.Debit Accounts Receivable $180 and credit Cash $180.

Calculate the adjusted cash balance per books of ABC Co. given the following information.  ItemAmountBalance per bank statement$10,005Balance per cash account book balance9,500Deposit in transit300Interest earned on the depositor's balance55NSF check100Outstanding checks850Multiple choice question.$9,510$8,550$9,455$10,305

Based on the following information, how much is the correct cash in bank assuming the cash balance per book is P500,000? NSF check 100,000Note collection 200,000Deposit in transit 30,000Group of answer choices730,000700,000800,000600,000

Calculate the adjusted cash balance per the books of XYZ Co. given the following information.  ItemAmountBalance per bank statement$600Balance per cash account book balance710Deposit in transit200Note collected by the bank on behalf of the depositor80Monthly bank charges40Outstanding checks50Multiple choice question.$990$630$750$950

A company has a $10,000 cash balance per its books. The bank statement has a balance of $9,580. The bank reconciliation included $800 of deposits-in transits, $500 of checks outstanding, a $100 NSF check from a customer, and a $20 bank service charge. Given the above reconciling items, the up-to-date cash balance equals .

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