Acme, Inc.'s books show an ending cash balance of $14,500 before preparing the bank reconciliation. Given the bank reconciliation shows outstanding checks of $3,900, deposits in transit of $2,900, NSF check of $190, and interest earned on the bank account of $100, the company's up-to-date ending cash balance equals:
$14,410.
$10,510.
$13,410.
$14,790.
To find the up-to-date ending cash balance, we need to adjust the ending cash balance provided by the company's books based on the information provided in the bank reconciliation.
First, subtract the outstanding checks from the ending cash balance: $14,500 - $3,900 = $10,600.
Next, add the deposits in transit to the adjusted ending cash balance: $10,600 + $2,900 = $13,500.
Then, subtract the NSF check: $13,500 - $190 = $13,310.
Finally, add the interest earned on the bank account: $13,310 + $100 = $13,410.
Therefore, Acme, Inc.'s up-to-date ending cash balance is $13,410. The correct answer is $13,410.