The Conner Company's August 31, 2014 cash balance on its books was $90,000. As of August 31, outstanding checks total $44,000 and deposits in transit total $30,000. How much was Conner's August 31, 2014 cash balance on Conner's bank statement?

Question

Quizplus · Accepted Answer

To find the cash balance on Conner's bank statement, we need to adjust the cash balance on Conner's books by adding deposits in transit and subtracting outstanding checks. 
Adjusted cash balance = Cash balance on books + Deposits in transit - Outstanding checks 
Adjusted cash balance = $90,000 + $30,000 - $44,000 
Adjusted cash balance = $76,000 
Therefore, the answer is (D) $104,000, as this is the adjusted cash balance on Conner's bank statement.

The Conner Company's August 31, 2014 Cash Balance on Its