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

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

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

Respuesta :

Otras preguntas

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