Multiple choice question 146 marigold corp. assembled the following information in completing its march bank reconciliation: balance per bank $14900 outstanding checks $3025 deposits in transit $4900 nsf check $310 bank service charge $100 cash balance per books $17160 as a result of this reconciliation, marigold will increase its cash account by $210. reduce its cash account by $1875. reduce its cash account by $410. reduce its cash account by $100.

reduce its cash account by $1875.

reduce its cash account by $410.

Explanation:

As for the information provided,

When we tally the cash balance with that of bank balance,

Outstanding checks which were already deducted in cash book will be added as yet outstanding and payment not made.

= + 3,025

Deposits in transit were already added in cash book, although yet not added to bank balance, thus deducted

= - 4,900

= +3,025 - 4,900 = - $1875

This means cash will be reduced by $1,875

Further NSF check is already added in cash but not yet added in bank = - $310

Further bank has deducted charges but in cash book not recorded thus it will be deducted now = - $100

= -$310 - $100 = - $410

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