Cardinal Company's bank statement showed a balance at May 31 of $180,974. The only reconciling items consisted of a large number of outstanding checks totaling $51,847. At May 31, what balance should Cardinal's Cash account show?

Question

Quizplus · Accepted Answer

To find the balance in Cardinal's Cash account, we must subtract the outstanding checks from the bank statement balance. Therefore, the balance in Cardinal's Cash account on May 31 should be:

$180,974 - $51,847 = $129,127

Therefore, the correct answer is choice B.

Cardinal Company's Bank Statement Showed a Balance at May 31