The balance shown in the August bank statement of Colt Company was $23,200.After examining the August bank statement and items included with it,the company's accountant found: What is the amount of cash that should be reported in the balance sheet as of August 31?
$$\begin{array} { | l | r | }
\hline \text { Checks outstanding } & \$ 4,300 \
\hline \text { NSF check } & 140 \
\hline \text { Note collected by bank for the Colt Company } & 1,200 \
\hline \text { Deposits outstanding } & 1,800 \
\hline \text { Bank service fees } & 60 \
\hline
\end{array}$$
A)$20,700.
B)$17,200.
C)$18,700.

Question

The balance shown in the August bank statement of Colt Company was $23,200.After examining the August bank statement and items included with it,the company's accountant found: What is the amount of cash that should be reported in the balance sheet as of August 31?
$$\begin{array} { | l | r | } 
\hline \text { Checks outstanding } & \$ 4,300 \
\hline \text { NSF check } & 140 \
\hline \text { Note collected by bank for the Colt Company } & 1,200 \
\hline \text { Deposits outstanding } & 1,800 \
\hline \text { Bank service fees } & 60 \
\hline
\end{array}$$
A)$20,700.
B)$17,200.
C)$18,700.

Quizplus · Accepted Answer

The correct answer is A. The amount of cash that should be reported in the balance sheet as of August 31 is $20,700. This is calculated by adding the deposits outstanding ($1,800) to the balance shown in the bank statement ($23,200) and then subtracting the checks outstanding ($4,300), the NSF check ($140), and the bank service fees ($60).

The Balance Shown in the August Bank Statement of Colt