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Question - A company's Cash account has a balance of $851 as of October 31. The bank statement for this account reports a balance of $1,520 as of October 31. There are outstanding checks totaling $840 and a deposit in transit of $60. The bank statement shows interest earned of $19, service charges of $30, a customer's returned check of $100. What is the reconciled Cash balance that should be reported on the company's balance sheet as of October 31?
a. $851
b. $1,430
c. $1,751
d. $740
Financial statements are a product of the accounting cycle. Think about two different companies: a manufacturing company, and a retail company.
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