Answer:
The correct cash balance that should be reported in the company's balance sheet at the end of the year is $3,800
Explanation:
The computation of the correct cash balance is shown below:
= Bank balance + Deposits outstanding - Checks outstanding
= $8,100 + $4,100 - $8,400
= $3,800
The other items which are given in the question are related to the bank balance. So, we do not consider it in the computation part. It already adjusted to the bank balance. Hence, we ignored it.
