Urban Bloom, Inc.'s books show an ending cash balance of $18,000 before preparing the bank reconciliation. Given the bank reconciliation shows outstanding checks of $4600, deposits in transit of $3600, NSF check of $260, and interest earned on the bank account of $170, the company's up-to-date ending cash balance equals:

$17,910

Explanation:

With regards to the above, we would calculate the company's up to date ending cash balance as;

Up to date ending cash balance = Ending cash balance per books + Interest received from bank - NSF check

Up to date ending cash balance = $18,000 + $170 - $260

Up to date ending cash balance = $17,910

*Please note that outstanding checks and deposits in transit are used mainly to reconcile bank statements and not cash or book balance.

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