Question

Linetech Company's bank statement showed an ending balance of $8,900. Items appearing in the bank reconciliation...

Linetech Company's bank statement showed an ending balance of $8,900. Items appearing in the bank reconciliation included: outstanding checks, $950; deposits in transit, $1,900; bank service charges, $59; and Driver Company's $295 check erroneously deducted from Linetech's bank account by the bank. What is the correct cash balance at the end of the month?

$9,850.

$9,555.

$10,145.

$13,408.

Business   Accounting   
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Answer #1

Option 3rd is correct. i.e $10,145

Amount($)
Bank balance                 8,900
Less:Outstanding checks                   -950
Add:Deposits in transit                 1,900
Add:Bank error                    295
Book cash balance              10,145
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