He balance shown in the August bank statement of Colt Company was $22,400. After examining the August bank statement and items included with it, the company's accountant found:

Checks outstanding $4,500

NSF check 140

Note collected by bank for the Colt Company 1,500

Deposits outstanding 2,300

Bank service fees 60

What is the amount of cash that should be reported in the balance sheet as of August 31?

A.$20,200

B.$16,700

C.$23,400

D.$15,700

Question

Heath Boyd

Business

30 October, 23:21

He balance shown in the August bank statement of Colt Company was $22,400. After examining the August bank statement and items included with it, the company's accountant found:

Checks outstanding $4,500

NSF check 140

Note collected by bank for the Colt Company 1,500

Deposits outstanding 2,300

Bank service fees 60

What is the amount of cash that should be reported in the balance sheet as of August 31?

A.$20,200

B.$16,700

C.$23,400

D.$15,700

+1

Answers (1)

Know the Answer?

Reid Hahn · Answer 1

A.$20,200

Explanation:

The computation of the cash amount which is to be reported is shown below:

= August bank statement balance - checks outstanding + deposit outstanding

= $22,400 - $4,500 + $2,300

= $20,200

The other items like NSF check, Note collected by the bank for the Colt Company, and Bank service fees are irrelevant. Hence, these are ignored and not be considered in the computation part