Question

Egrane, Inc.'s monthly bank statement showed the ending balance of cash of $18,600. The bank reconciliation for the period showed an adjustment for a deposit in transit of $1,550, outstanding checks of $2,100, a NSF check of $800, bank service charges of $35 and the EFT from a customer in payment of the customer's account of $1,600. What was the cash balance on the Egrane's books (before the adjustments for items on the bank reconciliation)? Multiple Choice $18,050 $17,285 $19,150 $20,415

Answer 1

Option B $17,285 is correct the answer.

Step-by-step explanation:

Computation Table

Particular Amount

Ending balance $18,600

Add: Deposit in transit $1,550

Less: Outstanding $2,100

Add: NSF check $800

Add: Bank charges $35

Less: EFT $1,600

Cash balance $17285