Acme, Inc.'s books show an ending cash balance of $10,500 before preparing the bank reconciliation. Given the bank reconciliation shows outstanding checks of $3,100, deposits in transit of $2,100, NSF check of $110, and interest earned on the bank account of $20, the company's up-to-date ending cash balance equals:

a. $10,410.

b. $7,310.

c. $9,410.

d. $10,630.

a. $ 10,410

Explanation:

Balance per books $ 10,500

Less: NSF Checks $ (110)

Add: Interest earned $ 20

Adjusted balance per books $ 10,410

The NSF checks is reduced from the book balance as the books would have included it as a positive balance.

The interest earned has to be added to the book balance as this information would have not been available with the book.

The outstanding checks represent checks issued by the company and thus would already have been recorded in the books.

the deposits in transit would also have been recorded in the books.