The balance in the Colt Company's cash account on August 31 was $18,900 before the bank reconciliation was prepared. After examining the August bank statement and items included with it, the company's accountant found: Checks outstanding $4,500 NSF check 110 Note collected by bank for the Colt Company 1,500 Deposits outstanding 4,000 Bank service fees 50What is the amount of cash that should be reported in the balance sheet as of August 31? A. $18,740B. $18,400C. $20,350D. $20,240

Question

Shea Moyer

Business

2 February, 02:02

The balance in the Colt Company's cash account on August 31 was $18,900 before the bank reconciliation was prepared. After examining the August bank statement and items included with it, the company's accountant found: Checks outstanding $4,500 NSF check 110 Note collected by bank for the Colt Company 1,500 Deposits outstanding 4,000 Bank service fees 50What is the amount of cash that should be reported in the balance sheet as of August 31? A. $18,740B. $18,400C. $20,350D. $20,240

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Answers (1)

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Izaiah Warren · Answer 1

D. $20,240

Explanation:

Adjusted balance should be reported in the balance sheet as on August 31.

Adjusted Cash Balance calculation

Cash balance as per books August 31 $18,900

Add:

Note collected by bank for the Colt Company $1,500

Less:

NSF check ($110)

Bank service fees ($50)

Adjusted Balance of cash account $20240

*The Following adjustments are already included in the Cash account balance so, these do not need any settlement in cash account.

Checks outstanding $4,500

Deposits outstanding 4,000