In preparing its bank reconciliation at March 31, Valley Company has the following information:

What is the proper cash balance at March 31 for balance sheet purposes?

Question

In preparing its bank reconciliation at March 31, Valley Company has the following information:

What is the proper cash balance at March 31 for balance sheet purposes?

Quizplus · Accepted Answer

$111,150 balance per bank statement + $17,250 deposits in transit - $17,250 outstanding checks - $750 bank error correction = $110,400.
$114,000 balance per books - $150 service charge - $3,450 NSF check = $110,400.

In Preparing Its Bank Reconciliation at March 31, Valley Company