B is corrent. The balance per books at 3/31/Y2 is $54,200. The amount would be increased by cash receipts per books and decreased by cash disbursements per books. Cash receipts per the bank in April were $58,400, but this amount includes the $10,300 in transit at 3/31. Therefore, cash receipts per books in April are $48,100 ($58,400 – $10,300). Cash disbursements per the bank in April were $49,700. This amount includes the 3/31 outstanding checks ($12,600) but does not include the 4/30 outstanding checks ($7,000). Therefore, April cash disbursements per books is $44,100 ($49,700 – $12,600 + $7,000). The cash balance per books at 4/30/Y2 is $58,200 ($54,200 at 3/31/Y2, plus $48,100 receipts, less $44,100 disbursements). An alternative solutions approach is to first compute the 4/30/Y2 bank balance ($56,500 + $58,400 – $49,700 = $65,200), and then adjust for outstanding checks ($65,200 – $7,000 = $58,200).
A is incorrect. The balance per books at 3/31/Y2 is $54,200. The amount would be increased by cash receipts per books and decreased by cash disbursements per books. Cash receipts per the bank in April were $58,400, but this amount includes the $10,300 in transit at 3/31. Therefore, cash receipts per books in April are $48,100 ($58,400 – $10,300). Cash disbursements per the bank in April were $49,700. This amount includes the 3/31 outstanding checks ($12,600) but does not include the 4/30 outstanding checks ($7,000). Therefore, April cash disbursements per books is $44,100 ($49,700 – $12,600 + $7,000). The cash balance per books at 4/30/Y2 is $58,200 ($54,200 at 3/31/Y2, plus $48,100 receipts, less $44,100 disbursements). An alternative solutions approach is to first compute the 4/30/Y2 bank balance ($56,500 + $58,400 – $49,700 = $65,200), and then adjust for outstanding checks ($65,200 – $7,000 = $58,200).
C is incorrect. The balance per books at 3/31/Y2 is $54,200. The amount would be increased by cash receipts per books and decreased by cash disbursements per books. Cash receipts per the bank in April were $58,400, but this amount includes the $10,300 in transit at 3/31. Therefore, cash receipts per books in April are $48,100 ($58,400 – $10,300). Cash disbursements per the bank in April were $49,700. This amount includes the 3/31 outstanding checks ($12,600) but does not include the 4/30 outstanding checks ($7,000). Therefore, April cash disbursements per books is $44,100 ($49,700 – $12,600 + $7,000). The cash balance per books at 4/30/Y2 is $58,200 ($54,200 at 3/31/Y2, plus $48,100 receipts, less $44,100 disbursements). An alternative solutions approach is to first compute the 4/30/Y2 bank balance ($56,500 + $58,400 – $49,700 = $65,200), and then adjust for outstanding checks ($65,200 – $7,000 = $58,200).
D is incorrect. The balance per books at 3/31/Y2 is $54,200. The amount would be increased by cash receipts per books and decreased by cash disbursements per books. Cash receipts per the bank in April were $58,400, but this amount includes the $10,300 in transit at 3/31. Therefore, cash receipts per books in April are $48,100 ($58,400 – $10,300). Cash disbursements per the bank in April were $49,700. This amount includes the 3/31 outstanding checks ($12,600) but does not include the 4/30 outstanding checks ($7,000). Therefore, April cash disbursements per books is $44,100 ($49,700 – $12,600 + $7,000). The cash balance per books at 4/30/Y2 is $58,200 ($54,200 at 3/31/Y2, plus $48,100 receipts, less $44,100 disbursements). An alternative solutions approach is to first compute the 4/30/Y2 bank balance ($56,500 + $58,400 – $49,700 = $65,200), and then adjust for outstanding checks ($65,200 – $7,000 = $58,200).
