The May bank statement for Accounting Services shows a balance of $6300,but the balance per books shows a cash balance of $7,980.Other information includes:
1)A check for $200 to pay the electric bill was recorded on the books as $20.
2)Included on the bank statement was a note collected by the bank for $400 plus interest of $30.
3)Checks outstanding totaled $260.
4)Bank service charges were $50.
5)Deposits in transit were $2,140.
-According to the above Scenario.Which item should be added to the company's book balance during the bank reconciliation?
A)Deposit in transit
B)Check outstanding
C)Bank service charge
D)Note collected by the bank

Question

The May bank statement for Accounting Services shows a balance of $6300,but the balance per books shows a cash balance of $7,980.Other information includes: 
1)A check for $200 to pay the electric bill was recorded on the books as $20.
2)Included on the bank statement was a note collected by the bank for $400 plus interest of $30.
3)Checks outstanding totaled $260.
4)Bank service charges were $50.
5)Deposits in transit were $2,140.
-According to the above Scenario.Which item should be added to the company's book balance during the bank reconciliation?
A)Deposit in transit
B)Check outstanding
C)Bank service charge
D)Note collected by the bank

Quizplus · Accepted Answer

The note collected by the bank ($400) plus interest ($30) should be added to the company's book balance, as it increases the cash balance but has not yet been recorded in the company's books.

The May Bank Statement for Accounting Services Shows a Balance