Calculate from the following information accumulated by Linda Lee the adjusted bank balance at the end of August 2020. Bank statement ending cash balance $2,500
General ledger cash balance ending 2,750
Bank monthly service charge 20
Deposits in transit 1,400
Outstanding cheques 1,235
NSF cheque returned with bank statement 65
A) $2,750
B) $2,500
C) $2,665
D) $2,435

Question

Quizplus · Accepted Answer

Starting with the bank statement ending cash balance of $2,500, we need to adjust for deposits in transit and outstanding cheques.

Add deposits in transit: 
$2,500 + $1,400 = $3,900

Subtract outstanding cheques: 
$3,900 - $1,235 = $2,665

Then, we need to consider the NSF cheque returned with the bank statement and the bank monthly service charge.

Subtract NSF cheque amount: 
$2,665 - $65 = $2,600

Subtract bank monthly service charge: 
$2,600 - $20 = $2,580

So the adjusted bank balance at the end of August 2020 is $2,580, which corresponds to choice C).

Calculate from the Following Information Accumulated by Linda Lee the Adjusted