The following information pertains to Honeybee Co. at December 31, 2014

Bank statement balance

$40,000

Checkbook balance

56,400

Deposits in transit

20,000

Outstanding checks

4,000

Bank service charges for December

400

In Honeybee”s balance sheet at December 31, 2014 cash should be reported as:

  1. $36,000.
  2. $40,000.
  3. $56,000.
  4. $60,000.