Question

A company's bank statement shows a cash balance of $4,340. Comparing the company's cash records with the monthly bank statement reveals several additional cash transactions such as checks outstanding of $3,900, deposits outstanding of $1,210, NSF check of $320, and service fee of $54. Calculate the correct balance of cash?

Answer 1

the correct balance of cash is $1,650

Step-by-step explanation:

The computation of the correct balance of cash is shown below:

= Cash balance + deposits outstanding - check outstanding

= $4,340 + $1,210 - $3,900

= $1,650

Hence, the correct balance of cash is $1,650

WE basically applied the above formula so that the correct value could arrive