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

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

Quizplus · Accepted Answer

$148,200 balance per bank statement + $23,000 deposits in transit - $23,000 outstanding checks - $1,000 bank error correction = $147,200.
$152,000 balance per books - $200 service charge - $4,600 NSF check = $147,200.

In Preparing Its Bank Reconciliation at March 31, Mountainview Company