m State U x Course https apter 7Exam Graded s aMu the follow

m State U x Course https// apter 7-Exam (Graded) s aMu the following facts for Lowmann Company: The month-end bank statement shows a balance of $40.000: outstanding checks total $2.ooo; a daposit of $8.000 is is transit at month-end: and a check for $400 was erroneously charged against the account by the bank. What is the correet cash balance at the end of the month? b$46,400 $3360

Solution

Answer is $46,400

Balance per bank statement = $40,000
Outstanding check = $2,000
Deposit-in transit = $8,000
Error in Check = $400

Correct Cash Balance = Balance per bank statement - Outstanding check + Deposit-in transit + Error in Check
Correct Cash Balance = $40,000 - $2,000 + $8,000 + $400
Correct Cash Balance = $46,400