Bacher Company Developed the Following Reconciling Information in Preparing Its

question 56

Multiple Choice

Bacher Company developed the following reconciling information in preparing its September bank reconciliation: $\begin{array}{lr}\text { Cash balance per bank, } 9 / 30 & \$ 6,160 \\\text { Note receivable collected by bank } & 3,360 \\\text { Outstanding checks } & 3,200 \\\text { Deposits in transit } & 2,520 \\\text { Bank service charge } & 42 \\\text { NSF check } & 672\end{array}$ Using the above information, determine the cash balance per books (before adjustments) for the Bacher Company.

• A) $2,834
• B) $5,480
• C) $8,148
• D) $8,828

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Definitions:

Gross Assets

The total sum of an individual's or entity's assets before any liabilities or deductions are taken into account.

Asset Sales

The process of selling assets of a company, often to generate cash or reduce liabilities.

Trade or Business

This refers to the regular and continuous operation of an activity with the purpose of earning income or profit.

Depreciation

An accounting method of allocating the cost of a tangible or physical asset over its useful life to account for declines in value.