On May 31, Soney Corporation's Cash account showed a balance of $12,500 before the bank reconciliation was prepared. After examining the May bank statement and items included which it, the company's accountant found the following items:
Checks outstanding... $3,150
Deposits Outstanding... $2,900
NSF check... $160
Service Charges... $75
Error: Soney Corp. wrote a check for $115 but recorded it incorrectly for $1,150.
What is the amount of cash that should be reported in the company's balance sheet as of May 31?

The adjusted cash balance is $ 13,700

Explanation:

Balance per cash account                                                $ 12,500

Less: NSF Cheque                                                            $  (   160)

Less: Service charges                                                       $  (    75)

Add: Correction of error ($1150 - $ 115)                            $  1,435

Adjusted balance per cash account                                $ 13,700

The checks outstanding are checks issued by the Company and are recorded in the cash account and does not require an adjustment for cheques which are not presented.

Deposits collected are recorded in the cash book and does not need any adjustment.

NSF cheques is a cheque deposited which did not clear so an adjustment is needed.

Service charges by the bank also need to be recorded as an adjustment.

Amount wrongly recorded definitely needs to be adjusted

the above statement/question is (true);