On a bank reconciliation,$75 interest earned on a checking account would
A)appear as a deduction of $75 from the balance per books.
B)appear as an addition of $75 to the balance per bank.
C)appear as an addition of $75 to the balance per books.
D)not appear as an adjustment on the bank reconciliation

Question

Quizplus · Accepted Answer

Interest earned on a checking account increases the balance per books because it is income that the company has earned but may not yet have recorded in its books. Therefore, it is added to the balance per books to reconcile the company's records with the bank's records.

On a Bank Reconciliation,$75 Interest Earned on a Checking Account