Homework SourseThe cash account shows a balance of 50000 before reconciliat
The cash account shows a balance of $50,000 before reconciliation. The bank statement does not include a deposit of $2,100 made on the last day of the month. The bank statement shows a collection by the bank of $1,750 and a customer\'s check for $550 was returned because it was NSF. A customer\'s check for $1,050 was recorded on the books as $1,005, and a check written for $168 was recorded as $186. The correct balance in the cash account was
Select one:
A. $47,727
B. $47,763
C. $51,263
D. $53,363
Solution
Answer is C. $51,263
| Cash balance before reconciliation | $ 50,000 |
| Add: Collection by bank | $ 1,750 |
| Less: NSF Check | $ (550) |
| Add: Error in recording of customer check ($1,050 - $1,005) | $ 45 |
| Add: Error in recording of check ($186-$168) | $ 18 |
| Adjusted cash balance | $ 51,263 |
