Taylor Corp.identified the following data in preparing a bank reconciliation on October 31, 2016. $$\begin{array} { l r }
\text { Bank statement balance } & \$ 29,600 \
\text { Taylor's book balance (before adjustments) } & ? \
\text { Outstanding checks } & 3,100 \
\text { NSF checks } & 300 \
\text { Service charges } & 200 \
\text { Deposits in transit } & 2,200 \
\text { Interest earned on checking account } & 100
\end{array}$$ ?? What is the net amount of the adjustments to Taylor's cash balance as a result of the bank reconciliation?
A) No amounts need to be recorded
B) $400 increase
C) $400 decrease
D) $900 decrease

Question

Taylor Corp.identified the following data in preparing a bank reconciliation on October 31, 2016. $$\begin{array} { l r } 
\text { Bank statement balance } & \$ 29,600 \
\text { Taylor's book balance (before adjustments) } & ? \
\text { Outstanding checks } & 3,100 \
\text { NSF checks } & 300 \
\text { Service charges } & 200 \
\text { Deposits in transit } & 2,200 \
\text { Interest earned on checking account } & 100
\end{array}$$ ?? What is the net amount of the adjustments to Taylor's cash balance as a result of the bank reconciliation?
A) No amounts need to be recorded
B) $400 increase
C) $400 decrease
D) $900 decrease

Quizplus · Accepted Answer

To adjust Taylor's book balance, subtract NSF checks ($300) and service charges ($200), and add interest earned ($100). The net adjustment is a $400 decrease ($300 + $200 - $100 = $400).

Taylor Corp ?? What Is the Net Amount of the Adjustments to on October