Use the following data to answer the question presented below for Raines Corp.'s preparation of a bank reconciliation on October 31, 2016: $$\begin{array} { l r }
\text { Bank statement balance } & \$ 30,700 \
\text { Raines' book balance (before adjustments) } & ? \
\text { Outstanding checks } & 4,200 \
\text { NSF checks } & 400 \
\text { Service charges } & 300 \
\text { Deposits in transit } & 3,100 \
\text { Interest earned on checking account } & 100
\end{array}$$ ? ?What is the adjusted cash balance on October 31, 2016?
A) $29,600
B) $30,100
C) $30,200
D) $30,700

Question

Use the following data to answer the question presented below for Raines Corp.'s preparation of a bank reconciliation on October 31, 2016: $$\begin{array} { l r } 
\text { Bank statement balance } & \$ 30,700 \
\text { Raines' book balance (before adjustments) } & ? \
\text { Outstanding checks } & 4,200 \
\text { NSF checks } & 400 \
\text { Service charges } & 300 \
\text { Deposits in transit } & 3,100 \
\text { Interest earned on checking account } & 100
\end{array}$$ ? ?What is the adjusted cash balance on October 31, 2016?
A) $29,600
B) $30,100
C) $30,200
D) $30,700

Quizplus · Accepted Answer

The adjusted cash balance is $29,600. This is calculated by taking the bank statement balance of $30,700 and subtracting the outstanding checks of $4,200 and the service charges of $300, and adding the deposits in transit of $3,100 and the interest earned of $100.

Use the Following Data to Answer the Question Presented Below