Compute the adjusted bank balance on May 31, 2019, from the following information: Chequebook balance on May 31 $7,200
Outstanding cheques 500
NSF cheque returned 100
Deposits in transit 250
Service charges 10
Note collected by bank 250
A) $7,200
B) $7,340
C) $6,615
D) $7,560

Question

Quizplus · Accepted Answer

To compute the adjusted bank balance, start with the chequebook balance and adjust for outstanding items. Add deposits in transit ($250) and the note collected by the bank ($250), and subtract outstanding cheques ($500), the NSF cheque ($100), and service charges ($10). This results in $7,200 + $250 + $250 - $500 - $100 - $10 = $7,090. However, the correct calculation should be $7,200 + $250 - $500 + $250 - $100 - $10 = $7,090, indicating a mistake in the provided choices. Given the options, the closest to the correct calculation based on the provided information and typical adjustments would be $7,340, but this appears to be a mistake in the question's calculation or options.

Compute the Adjusted Bank Balance on May 31, 2019, from the Following