In preparing its bank reconciliation at March 31, Clark Company has the followin
ID: 2389075 • Letter: I
Question
In preparing its bank reconciliation at March 31, Clark Company has the following information:Cash balance per bank statement
$37,550
Cash balance per general ledger
38,000
Deposits in transit
5,250
Outstanding checks
5,750
Deposit erroneously recorded by bank in Clark's account
on March 12
250
Bank service charges for March
50
NSF check returned by bank
1,150
What is the proper cash balance at March 31 for balance sheet purposes?
Answer
A. $35,750
B. $36,750
C. $36,800
D. $37,050
E. None of the above
Explanation / Answer
Answer is : D Prove : Bank reconciliation statement Bank at per bank statement + Deposits in transit - Outstanding checks $37,550 + 5,250 - 5,750 = $37,050 Cash balance per general ledger +Deposit erroneously - Bank service - NSF check 38,000 + 250 - 50 -1,150 = $37,050