Question

A company's general ledger shows a cash balance of $4,590. Comparing the company's cash records with the monthly bank statement reveals several additional cash transactions such as checks outstanding of $2,860, bank service fees of $140, and interest earned of $28.

Calculate the correct balance of cash.

Answer 1

correct balance cash is $4478

Step-by-step explanation:

given data

cash balance = $4590

check outstanding = $2860

service fee = $140

interest earn = $28

to find out

correct balance cash

solution

we have given check outstanding , service fees and interest

so

correct balance cash is express as

correct balance cash = cash balance - service fee + interest

correct balance cash = 4590 - 140 + 28

correct balance cash = 4478

so correct balance cash is $4478