Lenore,Inc.gathered the following information from its accounting records and the October bank statement to prepare the October bank reconciliation: The up-to-date ending cash balance on October 31 is:
A)$7,940
B)$8,290
C)$5,290
D)$4,590

Question

Lenore,Inc.gathered the following information from its accounting records and the October bank statement to prepare the October bank reconciliation:  The up-to-date ending cash balance on October 31 is:
A)$7,940 
B)$8,290 
C)$5,290 
D)$4,590

Quizplus · Accepted Answer

The ending cash balance per books does not reflect the interest received from the bank,the bank service charge,or the NSF check that would be included in the October bank statement.As such,the up-to-date ending cash balance on October 31 is computed as follows:
Up-to-date ending cash balance = Ending cash balance per books + Interest received from the bank − Bank service charge − NSF check of T.Owens
= $7,000 + $1,700 − $60 − $350 = $8,290