The cash account shows a balance of $90,000 before reconciliation.The bank statement does not include a deposit of $5,000 made on the last day of the month.The bank statement shows a collection by the bank of $2,400 and a customer's check for $640 was returned because it was NSF.A customer's check for $900 was recorded on the books as $1,080, and a check written for $138 was recorded as $192.The correct balance in the cash account was

Question

Quizplus · Accepted Answer

Starting balance in cash account = $90,000
Add: 
Deposit not included in bank statement = $5,000
Collection by the bank = $2,400
Subtract:
NSF check = $640
Check recorded on books for less amount = $180 (difference between $1,080 and $900)
Check recorded on books for more amount = $54 (difference between $192 and $138)

New balance in cash account = $90,000 + $5,000 + $2,400 - $640 - $180 - $54 = $91,634. 
Therefore, the correct answer is B.

The Cash Account Shows a Balance of $90,000 Before Reconciliation