Linetech Company's bank statement showed an ending balance of $8,000. Items appearing in the bank reconciliation included: outstanding checks, $500; deposits in transit, $1,000; bank service charges, $50; and Driver Company's $250 check erroneously deducted from Linetech's bank account by the bank. How much is the correct cash balance at the end of the month?
A) $10,600.
B) $8,750.
C)$8,500.
D)$8,250.

Question

Quizplus · Accepted Answer

Starting with the bank statement balance of $8,000:
- Add deposits in transit of $1,000
- Subtract outstanding checks of $500
- Subtract bank service charges of $50
- Add the erroneously deducted check of $250
The corrected balance is $8,750.

Linetech Company's Bank Statement Showed an Ending Balance of $8,000