Mason Company gathered the following information from its accounting records and the October bank statement to prepare the October bank reconciliation:

-Use the information above to answer the following question.The up-to-date ending cash balance on October 31 is:
A) $3,970
B) $4,145
C) $2,645
D) $2,295

Question

Mason Company gathered the following information from its accounting records and the October bank statement to prepare the October bank reconciliation:
 
-Use the information above to answer the following question.The up-to-date ending cash balance on October 31 is:
A) $3,970 
B) $4,145 
C) $2,645 
D) $2,295

Quizplus · Accepted Answer

The up-to-date ending cash balance on October 31 is the adjusted balance per bank statement, which is $4,145. This is found by taking the balance per bank statement ($2,295), adding deposits in transit ($1,500), subtracting outstanding checks ($150), adding interest earned ($30), and subtracting bank service charges ($30).

Mason Company Gathered the Following Information from Its Accounting Records