On October 31,2015,the bank statement shows that your company has $12,956.73 in its checking account.You are aware of three outstanding checks for a total of $2,112.19.During October,2015,the bank rejected two deposited checks from customers totaling $654.19 because of insufficient funds and charged you $12.00 in service fees.You had not yet received notice about the bad checks,but you were aware of and have recorded the $12.00 of service fees.Prior to adjustment on October 31,2015,your Cash account would have a balance of:
A) $14,402.73.
B) $15,711.11.
C) $11,498.73.
D) $10,202.35.

Question

Quizplus · Accepted Answer

Starting balance in bank statement = $12,956.73
Minus outstanding checks = $2,112.19

Adjusted balance in bank statement = $10,844.54

Minus rejected checks and service fees = $654.19 + $12.00 = $666.19

Adjusted balance in bank statement = $10,178.35

Therefore, prior to adjustment on October 31, 2015, the Cash account balance would be the same as the adjusted balance in the bank statement, which is $10,178.35.

On October 31,2015,the Bank Statement Shows That Your Company Has