If the month-end bank statement shows a balance of $72,000, outstanding checks are $54,000, a deposit of $15,000 was in transit at month end, and a check for $3,000 was erroneously charged by the bank against the account, the correct balance in the bank account at month end is
A) $33,000.
B) $36,000.
C) $72,000.
D) $114,000.

Question

Quizplus · Accepted Answer

- Start with the balance on the bank statement: $72,000
- Subtract the outstanding checks: -$54,000 
= $18,000
- Add the deposit in transit: +$15,000 
= $33,000
- Subtract the erroneously charged check: -$3,000
= $30,000 (the correct balance in the bank account at month end)

Therefore, the answer is B, $36,000, as it is not provided as an option.

If the Month-End Bank Statement Shows a Balance of $72,000