Urban Bloom, Inc.'s books show an ending cash balance of $18,000 before preparing the bank reconciliation. Given the bank reconciliation shows outstanding checks of $5,400, deposits in transit of $3,600, NSF check of $180, and interest earned on the bank account of $18, the company's up-to-date ending cash balance equals:

A) $12,438.

B) $17,838.

C) $16,038.

D) $18,198.

Question

Business

Cory Avila

29 November, 13:30

Urban Bloom, Inc.'s books show an ending cash balance of $18,000 before preparing the bank reconciliation. Given the bank reconciliation shows outstanding checks of $5,400, deposits in transit of $3,600, NSF check of $180, and interest earned on the bank account of $18, the company's up-to-date ending cash balance equals:

A) $12,438.

B) $17,838.

C) $16,038.

D) $18,198.

+5

Answers (1)

Know the Answer?

Elsa Novak · Answer 1

B) $17,838.

Explanation:

cash balance $18,000

- NSF check ($180)

+ interest earned $18

reconciled cash balance $17,838

Outstanding checks ($5,400) and deposits in transit ($3,600) are used to reconcile bank statements, not the company's cash or book balance.