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5 August, 04:51

Acme, Inc.'s books show an ending cash balance of $20,000 before preparing the bank reconciliation. Given the bank reconciliation shows outstanding checks of $5,000, deposits in transit of $4,000, NSF check of $300, and interest earned on the bank account of $210, the company's up-to-date ending cash balance equals:

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  1. 5 August, 05:53
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    The up to date ending cash balance of the company will be $19,910

    Explanation:

    The up to date ending cash balance of the company is computed as:

    Ending cash balance = Books shows ending cash Balance - (NSF check - Interest earned on bank account)

    where

    Books shows ending cash Balance is $20,000

    And

    = NSF check - Interest earned on bank account

    = $300 - $210

    = $90

    Putting the values above:

    = $20,000 - $90

    = $19,910
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