At the end of March, the Elbert Company records showed a cash balance of $7,027. When comparing the March 31 bank statement with the company’s cash account, the company discovered that deposits in transit were $725, outstanding checks totaled $862, bank service charges were $28, and NSF checks totaled $175. Required: 1) compute the March 31 reconciled cash balance of the Elbert Company. 2) compute the cash balance listed on the March 31 bank statement.
