The bank statement for Tetra Company contained the following items: a bank service charge of $10; a credit memo for interest earned, $15; and a $50 NSF check from a customer. The company had outstanding checks of $100 and a deposit in transit of $300. Assuming that the unadjusted bank balance was $500, what is the unadjusted book balance?
A) $745
B) $455
C) $700
D) $800

Question

Quizplus · Accepted Answer

$500 unadjusted bank balance - $100 outstanding checks + $300 deposit in transit = $700 true cash balance; X unadjusted book balance - $10 bank service charge + $15 credit memo - $50 NSF check = $700 true cash balance; X unadjusted book balance = $700 + $10 - $15 + $50 = $745

The Bank Statement for Tetra Company Contained the Following Items