Question

The Lechwe Company's December 31 pre-reconciliation cash balance on its books was $93,000. As of December 31, outstanding checks total $45,200 and deposits in transit total $30,600. Assuming there are no other reconciling items, what was the December 31 cash balance on Lechwe's bank statement

Answer 1

$107,600

Step-by-step explanation:

The cash balance on Lechwe' bank would be calculated as;

Cash balance = Corrected cash book balance + Outstanding cheques - Deposit in transit

Given that;

Corrected cash book balance = $93,000

Outstanding cheques = $45,200

Deposit in transit = $30,600

= $93,000 + $45,200 - $30,600

= $107,600

Therefore, the December 31 cash balance on Lechwe's bank statement is $107,600