The following information is available for Jack's Unlimited Company for the current month. $$\begin{array} { | l | l | }
\hline \text { Book balance end of the month } & \$ 7100 \
\hline \text { Outstanding cheques } & 700 \
\hline \text { Deposits in transit } & 4000 \
\hline \text { Service charges } & 95 \
\hline \text { Interest revenue } & 35 \
\hline
\end{array}$$ What is the adjusted book balance on the bank reconciliation?
A)$10,270
B)$7040
C)$7740
D)$6970

Question

The following information is available for Jack's Unlimited Company for the current month. $$\begin{array} { | l | l | } 
\hline \text { Book balance end of the month } & \$ 7100 \
\hline \text { Outstanding cheques } & 700 \
\hline \text { Deposits in transit } & 4000 \
\hline \text { Service charges } & 95 \
\hline \text { Interest revenue } & 35 \
\hline
\end{array}$$ What is the adjusted book balance on the bank reconciliation?
A)$10,270
B)$7040
C)$7740
D)$6970

Quizplus · Accepted Answer

The adjusted book balance is calculated by taking the book balance, subtracting service charges, and adding interest revenue: $7100 - $95 + $35 = $7040.

The Following Information Is Available for Jack's Unlimited Company for the Current