The amount of cash to be reported on the balance sheet at June 30 is the
A) total of the cash column in the cash receipts journal as of June 30
B) adjusted balance appearing in the bank reconciliation for June 30
C) total of the cash column in the cash payments journal as of June 30
D) balance as of June 30 on the bank statement

Question

Quizplus · Accepted Answer

The adjusted balance appearing in the bank reconciliation for June 30 reflects the actual cash balance as of that date, after taking into account any outstanding checks, deposits in transit, and other reconciling items. This is the most accurate representation of the amount of cash that should be reported on the balance sheet as of June 30. The cash receipts and payments journals only provide information on the cash inflows and outflows during the period, and do not necessarily reflect the ending cash balance. The balance on the bank statement may not be the same as the actual cash balance due to timing differences and reconciling items that need to be adjusted for.

The Amount of Cash to Be Reported on the Balance