The following bank reconciliation is presented for the Kingston Company for the month of November 2007:
|
Balance per bank statement, 11/30/07 |
$18,040 |
|
|
Add: Deposit in transit |
4,150 |
|
|
Less: Outstanding checks |
$6,300 |
$22,190 |
|
Bank credit recorded in error |
20 |
6,320 |
|
Balance per books, 11/30/07 |
$15,870 |
Data for the month of December 2007 follow:
|
Per bank |
|
|
December deposits |
$26,100 |
|
December disbursements |
22,420 |
|
Balance, 12/31/07 |
21,720 |
All items that were outstanding as of November 30 cleared through the bank in December, including the bank credit. In addition, $2,500 in checks were outstanding as of December 31, 2007. What is the balance of cash per books at December 31, 2007?
a. $19,220
b. $19,240
c. $21,720
d. $24,220