The following information was taken from the bank reconciliation for mooner sooner inc. at the end of the year:
bank balance: $9,000
checks outstanding: $7,800
note collected by the bank: $1,300
service fee: $21
deposits outstanding: $4,600
nsf check (bad check) returned for $470
what is the correct cash balance that should be reported in mooner sooner's balance sheet at the end of the year?
$5,779
$8,530
$9,830
$5,800

The correct cash balance that should be reported in Mooner Sooner's balance sheet at the end of the year is $5,800.

Explanation:

For adjusting the bank statement balance do not consider note collected by the bank, service fee and NSF check returned. Note collected by the banks are already recorded in the bank passbook, so there is no adjustments are needed in the bank statement. Service charge is deducted by the bank, so service charge also recorded in bank passbook; hence no adjustments are required in the bank statement balance. In the case of NSF check returned no adjustments are needed in the bank statement balance.

correct bank balance = Bank balance + Deposits outstanding - Checks outstanding

                                    = $9,000 + $4,600 - $7,800

                                     = $5,800

MAKE SURE YOU AVOID THIS:

For calculating correct cash balance only checks outstanding and deposits outstanding are adjusted with bank balance. For getting correct cash balances add deposit outstanding to the balance as per the bank and minus outstanding checks. Deposit in transit amount must be added to the bank side of the bank reconciliation statement and outstanding check must be deducted from the bank side of the bank reconciliation statement. Here, bank balance is $9,000, checks outstanding are $7,800 and deposits outstanding is $4,600, hence correct cash balance is $5,800.

Therefore, The correct cash balance that should be reported in Mooner Sooner's balance sheet at the end of the year is $5,800.

answer; /// i believe that the correct answer is (b) money set aside for emergency repairs;

answerup to (3) three years;