Sparrow Corporation
The items listed below were identified while preparing a bank reconciliation for the checking account of Sparrow Corporation as of March 31, 2012.

-Refer to the information presented for Sparrow Corporation. Determine the amount of Sparrow's actual cash balance.
A) $16,800
B) $20,200
C) $ 1,700
D) Cannot be determined

Question

Sparrow Corporation 
The items listed below were identified while preparing a bank reconciliation for the checking account of Sparrow Corporation as of March 31, 2012.
 
-Refer to the information presented for Sparrow Corporation. Determine the amount of Sparrow's actual cash balance.
A) $16,800 
B) $20,200 
C) $ 1,700 
D) Cannot be determined

Quizplus · Accepted Answer

Sparrow's actual cash balance is $16,800. This is calculated by subtracting the amount of the bank overdraft ($3,400) from the amount of the cash balance per the bank statement ($20,200).

Sparrow Corporation The Items Listed Below Were Identified While Preparing a Bank