A company's cash ledger shows an ending balance of $4,000. Reconciling items included a bookkeeper error of $100 (a $500 check recorded as $600), two outstanding checks totaling $820, a service charge of $25, a deposit in transit of $280, and interest revenue of $31. What is the adjusted book balance?
A)$3,894
B)$3,460
C)$4,106
D)$4,540

Question

Quizplus · Accepted Answer

Starting balance = $4,000
Bookkeeper error of $100 = - $100
Outstanding checks = - $820
Service charge = - $25
Deposit in transit = + $280
Interest revenue = + $31
Adjusted book balance = $4,000 - $100 - $820 - $25 + $280 + $31 = $4,106

A Company's Cash Ledger Shows an Ending Balance of $4,000