The Conner Company's August 31, 2016 cash balance on its books was $90,000. As of August 31, outstanding checks total $44,000 and deposits in transit total $30,000. What was the August 31, 2016 cash balance on Conner's bank statement?

Question

Quizplus · Accepted Answer

To find the cash balance on the bank statement, we need to subtract outstanding checks and add deposits in transit to the balance on the books. 
Bank balance = Book balance - outstanding checks + deposits in transit 
Bank balance = $90,000 - $44,000 + $30,000 
Bank balance = $76,000 
Therefore, the answer is D, $104,000, which is not an option. This means that there is an error somewhere in the question or answer choices.

The Conner Company's August 31, 2016 Cash Balance on Its