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On May 31, Company O's general ledger shows a cash balance of $5,123.
The May 31 bank statement shows a balance of $4,905. Other information is available as follows.
1. A May 31 deposit of $300 does not appear on the bank statement; but a $3 service charge does.
2. A customer's $40 insufficient funds (nsf) check has been returned with the bank statement.
3. Outstanding checks of $10, $15, and $100 are identified on May 31.
Question 1: What is the correct cash balance on May 31?
(A) $4,905
(B) $5,080
(C) $5,166
(D) $5,205
Financial Statement Analysis and Preparation
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