On May 31st, Company O's General ledger shows a cash balance of $5123. The May 31 bank statement shows a balance of $4905. Other information is available as follows:
1. A May 31 deposit of $300 does not appear on the bank statement; but a $3 service charge does.
2. A customer's $40 insufficient funds check has been returned with the bank statement.
3. Outstanding checks of $10, 15 and $100 are identified on May
What is the correct cash balance for May 31?
A. $4905 B $5080 C $5166 D.$5204
| ANSWER: B- $ 5080 | |
| Cash balance as per General Ledger | 5123 |
| Less: Bank Service Charges | -3 |
| Less: NSF check | -40 |
| Correct cash balance for May 31 | 5080 |
On May 31st, Company O's General ledger shows a cash balance of $5123. The May 31...