The following information pertains to Sooner Company's cash balance and bank reconciliation as of August 31: Company balance before reconciliation $5,000 Checks outstanding $2,500 Notes collected by the bank $2,200 Service fee $50 Deposits outstanding $2,000 What is the correct cash balance for Sooner Company?

(A) $5,150.

(B) $7,650.

(C) $7,150.

(D) $7,250.

Question

Nikhil Freeman

Business

18 November, 10:15

The following information pertains to Sooner Company's cash balance and bank reconciliation as of August 31: Company balance before reconciliation $5,000 Checks outstanding $2,500 Notes collected by the bank $2,200 Service fee $50 Deposits outstanding $2,000 What is the correct cash balance for Sooner Company?

(A) $5,150.

(B) $7,650.

(C) $7,150.

(D) $7,250.

+1

Answers (1)

Know the Answer?

Amina Lynch · Answer 1

Answer: The correct cash balance for Sooner Company is " (C) $7,150."

Explanation: The balance of the company before the settlement was $ 5000. The data to take into account to adjust the differences are:

Notes collected by the bank $ 2,200

Service fee $ 50

Therefore: 5000 + 2200 - 50 = $7150