multiple choice question after posting the required adjusting journal entries from the bank reconciliation…

multiple choice question after posting the required adjusting journal entries from the bank reconciliation below, show what the balance of the cash account in abc co.s general ledger will be by selecting the correct answer below. bank balance $1,005 book balance $1,250 add: deposit in transit 300 add: interest earned 50 less: outstanding checks 185 less: nsf check - j. roberts 180 cash will have a balance of $1,250. cash will have a balance of $1,300. cash will have a balance of $1,005. cash will have a balance of $1,120.

multiple choice question after posting the required adjusting journal entries from the bank reconciliation below, show what the balance of the cash account in abc co.s general ledger will be by selecting the correct answer below. bank balance $1,005 book balance $1,250 add: deposit in transit 300 add: interest earned 50 less: outstanding checks 185 less: nsf check - j. roberts 180 cash will have a balance of $1,250. cash will have a balance of $1,300. cash will have a balance of $1,005. cash will have a balance of $1,120.

Answer

Explanation:

Step1: Start with book balance

The book - balance is the starting point for adjusting the cash account in the general ledger. The book balance is $1,250.

Step2: Add interest earned

Interest earned increases the cash balance. So we add $50 to the book balance. New balance = $1,250 + $50=$1,300.

Step3: Subtract NSF check

An NSF (non - sufficient funds) check reduces the cash balance. So we subtract $180 from the balance calculated in Step 2. New balance = $1,300−$180 = $1,120.

Answer:

Cash will have a balance of $1,120.