The following information pertains to Sooner Company's cash balance and bank reconciliation as of August 31: What is the correct cash balance for Sooner Company?
$$\begin{array} { | l | r | }
\hline \text { Compary balance before reconciliation } & \$ 5,000 \
\hline \text { Checks outstanding } & \$ 2,500 \
\hline \text { Notes collected by the bank } & \$ 2,200 \
\hline \text { Serice fee } & \$ 50 \
\hline \text { Deposits outstanding } & \$ 2,000 \
\hline
\end{array}$$
A)$7,150.
B)$5,150.
C)$7,650.

Question

The following information pertains to Sooner Company's cash balance and bank reconciliation as of August 31: What is the correct cash balance for Sooner Company?
$$\begin{array} { | l | r | } 
\hline \text { Compary balance before reconciliation } & \$ 5,000 \
\hline \text { Checks outstanding } & \$ 2,500 \
\hline \text { Notes collected by the bank } & \$ 2,200 \
\hline \text { Serice fee } & \$ 50 \
\hline \text { Deposits outstanding } & \$ 2,000 \
\hline
\end{array}$$
A)$7,150.
B)$5,150.
C)$7,650.

Quizplus · Accepted Answer

The correct cash balance is calculated as: Company balance before reconciliation ($5,000) + Notes collected by the bank ($2,200) - Service fee ($50) = $7,150.

The Following Information Pertains to Sooner Company's Cash Balance and Bank