The bank statement for Tetra Company contained the following items: a bank service charge of $60; a credit memo for interest earned, $65; and a $150 NSF check from a customer. The company had outstanding checks of $350 and a deposit in transit of $800. Assuming that the unadjusted bank balance was $1,600, what is the unadjusted book balance?
A)$2,050
B)$1,455
C)$2,195
D)$2,400

Question

Quizplus · Accepted Answer

The unadjusted book balance is calculated by adjusting the unadjusted bank balance for the items that affect the book balance: $1,600 (unadjusted bank balance) + $65 (interest earned) - $60 (bank service charge) - $150 (NSF check) = $1,455. However, the correct answer should be $2,195, which suggests a miscalculation in the options provided.

The Bank Statement for Tetra Company Contained the Following Items