Cardinal Company's bank statement showed a balance at May 31 of $180,974. The only reconciling items consisted of a large number of outstanding checks totaling $51,847.

At May 31, what balance should Cardinal's Cash account show?

a) $232,821 b) $77,280 c) $180,794 d) $129,127

Question

Business

Valeria

5 January, 02:00

Cardinal Company's bank statement showed a balance at May 31 of $180,974. The only reconciling items consisted of a large number of outstanding checks totaling $51,847.

At May 31, what balance should Cardinal's Cash account show?

a) $232,821 b) $77,280 c) $180,794 d) $129,127

+5

Answers (2)

Know the Answer?

Nehemiah Jarvis · Answer 1

The answer is D) 129,127

Explanation:

Cardinal's Company bank statement has a balance of $180,974 at May 31st.

The only reconciling items are those of outstanding checks totaling $51,847.

These are checks that have been presented for payment to the bank, but have not yet cleared and been deducted from the bank balance. We therefore need to consider these checks when calculating the correct cash balance at May 31st.

Therefore the real cash balance will be 180974 - 51847 = $129127

The answer is D) 129,127

Anabelle Chung · Answer 2

d) $129,127

Explanation:

Cardinal Company's

Bank statement balance at May 31 of $180,974

Less outstanding checks totaling $51,847

Cash account balance $129,127

Therefore at May 31, Cardinal's Cash account balance show $129,127

Cardinal Company's bank statement showed a balance at May 31 of $180,974. The only reconciling items consisted of a large number of outstanding checks totaling $51,847.At May 31, what balance should Cardinal's Cash account show?a) $232,821 b) $77,280 c) $180,794 d) $129,127

Cardinal Company's bank statement showed a balance at May 31 of $180,974. The only reconciling items consisted of a large number of outstanding checks totaling $51,847.

At May 31, what balance should Cardinal's Cash account show?

a) $232,821 b) $77,280 c) $180,794 d) $129,127