8 .The following information pertains to a company's cash balance and bank reconcilation as of August 31 The following information pertains to a company's cash balance and bank reconcillation as of August 31:Company balance before reconcillation$5,000Checks outstanding$2,500Notes collected by the bank$2,200Service fee$50$2,000Deposits outstandingWhat is the correct cash balance for the company?O $7,150.O $7,650.O $7,250.O $5,150.

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What is the correct cash balance for the company? O $7,150. O $7,650. O $7,250. O $5,150.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

Question

8 .The following information pertains to a company's cash balance and bank reconcilation as of August 31

The following information pertains to a company's cash balance and bank reconcillation as of August 31:
Company balance before reconcillation
$5,000
Checks outstanding
$2,500
Notes collected by the bank
$2,200
Service fee
$50
$2,000
Deposits outstanding
What is the correct cash balance for the company?
O $7,150.
O $7,650.
O $7,250.
O $5,150.

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