Northwest Plumbing's bank statement shows a bank balance of $43,667. The statement shows a bank service charge of $95. Northwest Plumbing's book balance shows outstanding checks of $5,292 and deposits in transit of $9,325. The adjusted balance on the bank side of the reconciliation would be:

Question

Quizplus · Accepted Answer

The adjusted balance on the bank side of the reconciliation is calculated by starting with the bank statement balance, then adding any deposits in transit, and subtracting any outstanding checks. Here, it's $43,667 (bank statement balance) + $9,325 (deposits in transit) - $5,292 (outstanding checks) = $47,700. The bank service charge affects the book balance, not the bank balance.

Northwest Plumbing's Bank Statement Shows a Bank Balance of $43,667