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31 July, 05:31

The balance shown in the August bank statement of Colt Company was $22,400. After examining the August bank statement and items included with it, the company's accountant found:

Checks outstanding $4,500

NSF check 140

Note collected by bank for the Colt Company 1,500

Deposits outstanding 2,300

Bank service fees 60

What is the amount of cash that should be reported in the balance sheet as of August 31?

A.$20,200

B.$16,700

C.$23,400

D.$15,700

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Answers (2)
  1. 31 July, 07:20
    0
    A.$20,200

    Explanation:

    The computation of the cash amount which should be reported in the balance sheet is shown below:

    = August Bank statement balance + Deposits outstanding - Checks outstanding

    = $22,400 + $2,300 - $4,500

    = $20,200

    The other amount which is given in the question is irrelevant. Hence, these items should not be considered in the computation, so they are ignored.
  2. 31 July, 09:16
    0
    the amount of cash that should be reported in balance sheet is $20200

    option A is correct

    Explanation:

    given data

    balance shown = $22400

    Checks outstanding = $4,500

    NSF = 140

    Note collected = 1500

    Deposits outstanding = 2300

    service fees = 60

    to find out

    What is the amount of cash should be reported

    solution

    we will find amount of that should reported as given by

    amount reported = balance amount + deposit outstanding - check outstanding ... 1

    put here all these value in equation 1 we get

    amount reported = 22400 + 2300 - 4500

    amount reported = 20200

    so the amount of cash that should be reported in balance sheet is $20200

    option A is correct
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