The Conner Company's August 31 pre-reconciliation cash balance on its books was $90,000.As of August 31,outstanding checks total $44,000 and deposits in transit total $30,000.Assuming there are no other reconciling items,what was the August 31 cash balance on Conner's bank statement?

Question

Quizplus · Accepted Answer

The August 31 cash balance on Conner's bank statement can be calculated as follows:

Beginning cash balance on books = $90,000 
Outstanding checks = $44,000 
Deposits in transit = $30,000

To find the adjusted bank balance, we subtract the outstanding checks and add the deposits in transit:

$90,000 - $44,000 + $30,000 = $76,000

Therefore, the correct answer is D) $104,000 since the question is asking for the cash balance on Conner's bank statement, not their books.

The Conner Company's August 31 Pre-Reconciliation Cash Balance on Its