Question

Finley, Inc.'s checkbook balance on December 31, 2017 was 84,800. In addition, Finley held the following items in its safe on December 31.

(1) A check for 1,800 from Peters, Inc. received December 30, 2017, which was not included in the checkbook balance.
(2) An NSF check from Garner Company in the amount of 3,600 that had been deposited at the bank, but was returned for lack of sufficient funds on December 29. The check was to be redeposited on January 3, 2018. The original deposit has been included in the December 31 checkbook balance.
(3) Coin and currency on hand amounted to 5,800.
The proper amount to be reported on Finley's balance sheet for cash at December 31, 2017 is

Answer 1

The proper amount to report on Finley's balance sheet for cash at December 31, 2017, is $88,800, which is calculated by adjusting the checkbook balance with the additional items in the safe.

Step-by-step explanation:

The correct amount to report on Finley's balance sheet for cash at December 31, 2017, can be determined by adjusting the checkbook balance for the additional items mentioned. Finley's checkbook balance is $84,800. We then add the check from Peters, Inc. which was not recorded yet, totaling $1,800. However, we must subtract the NSF check from Garner Company, which amounted to $3,600, since it was already included in the checkbook balance and then returned for insufficient funds. Additionally, we include the coin and currency on hand of $5,800. Therefore, Finley's correct cash balance would be calculated as follows:

• Checkbook balance: $84,800
• Add: Check from Peters, Inc.: +$1,800
• Subtract: NSF check from Garner Company: -$3,600
• Add: Coin and currency on hand: +$5,800

Calculating these amounts, the proper amount to be reported on the balance sheet for cash is $84,800 + $1,800 - $3,600 + $5,800 = $88,800.