The Balance Shown in the August Bank Statement of Colt

question 153

Multiple Choice

The balance shown in the August bank statement of Colt Company was $23,200.After examining the August bank statement and items included with it,the company's accountant found: What is the amount of cash that should be reported in the balance sheet as of August 31?
$$\begin{array} { | l | r | } \hline \text { Checks outstanding } & \$ 4,300 \\\hline \text { NSF check } & 140 \\\hline \text { Note collected by bank for the Colt Company } & 1,200 \\\hline \text { Deposits outstanding } & 1,800 \\\hline \text { Bank service fees } & 60 \\\hline\end{array}$$

• A)$20,700.
• B)$17,200.
• C)$18,700.

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Definitions:

Dividend Yield Ratio

A financial ratio that measures how much a company pays out in dividends each year relative to its stock price.

Net Operating Income

A financial metric that denotes a company’s income after subtracting operating expenses but before interest and taxes.

Total Common Stock

The aggregate value or amount of all shares of common stock issued by a company.

Net Income Before Taxes

A financial measure showing a company's profitability after accounting for all expenses except taxes.