Finley, Inc.'s checkbook balance on December 31, 2010 was $21,200.In addition, Finley held the following items in its safe on December 31.
(1) A check for $450 from Peters, Inc.received December 30, 2010, which was not included in the checkbook balance.
(2) An NSF check from Garner Company in the amount of $900 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, 2011.The original deposit has been included in the December 31 checkbook balance.
(3) Coin and currency on hand amounted to $1,450.
The proper amount to be reported on Finley's statement of financial position for cash at December 31, 2010 is

Question

Quizplus · Accepted Answer

To determine the proper amount to be reported on Finley's statement of financial position for cash at December 31, 2010, we need to adjust the checkbook balance for the items that were not included but should have been, and subtract the NSF check that was previously included. 
Adjusted checkbook balance: $21,200 + $450 - $900 = $20,750 
Adding the coin and currency on hand: $20,750 + $1,450 = $22,200 
Therefore, the proper amount to be reported on Finley's statement of financial position for cash at December 31, 2010 is $22,200, which is option C.