Correct cash balance at the end of the month


Apple Company's bank statement showed an ending balance of $5,000. Items appearing in the bank reconciliation included: outstanding checks, $500; deposits in transit, $1,000; bank service charges, $10; and Orange Company's check erroneously charged to Apple's bank account by the bank, $110. The correct cash balance at the end of the month should be reported as

a. $4,610

b. $5,390

c. $5,610

d. $6,610

e. None of the above is correct

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Accounting Basics: Correct cash balance at the end of the month
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