Question

The Roscoe Company's March 31 bank statement balance was $79,500. As of March 31, outstanding checks total $25,800 and deposits in transit total $16,900. Assuming there are no other reconciling items, what was the March 31 cash balance on Roscoe's books?
a. $70,600
b. $79,500
c. $122,200
d. $88,400

Answer 1

Answer:

a. $70,600

Explanation:

Calculation for the cash balance on Roscoe's books

Using this formula

Cash balance = Bank balance - Outstanding checks + Deposits in transit

Let plug in the formula

Cash balance = $79,500 -$25,800 + $16,900

Cash balance= $70,600

Therefore the cash balance on Roscoe's books will be $70,600