Question

Brockton carpet cleaning prepares a bank reconciliation at the end of every month. at the end of july, the balance in the general ledger checking account was $2,890 and the bank balance on the bank statement was $3,050. outstanding checks totaled $750 and deposits in transited were $470. the bank statement revealed that a check written for $190 was incorrectly recorded by brockton as a $290 disbursement. the bank statement listed service charges and nsf check charges totaling $220. the corrected cash balance is:

a. $2,500
b. $2,720
c. $3,050
d. $3,270

Answer 1

After performing a bank reconciliation process that includes adjustments for deposits in transit, outstanding checks, an error in recording a transaction, and bank fees, the corrected cash balance for Brockton carpet cleaning is determined to be $2,290.

Step-by-step explanation:

To determine the corrected cash balance for Brockton carpet cleaning, we need to reconcile the differences between the ledger balance and the bank statement. We'll adjust the balances by accounting for outstanding checks, deposits in transit, errors in recording transactions, and bank fees.

Here is the reconciliation process step-by-step:
Therefore, the corrected cash balance after reconciliation is $2,290, which is not one of the options provided in the question, suggesting there might be an error in the options or the information given.