Dance Town Academy
the Items Listed Below Were Identified While

Dance Town Academy
The items listed below were identified while preparing a bank reconciliation for the company's chequing account as of March 31.
$\begin{array}{lr}\text { Cash balance according to the general ledger } &?\\\text { Bank statement balance } & \$ 18,500 \\\text { Outstanding cheques } & 2,700\\ \text { Customer's bounced cheque } & 350 \\\text { Bank service charges } & 100 \\\text { Deposits in transit } & 1,000 \\\text { Interest earned on the chequing account } & 60\end{array}$
-Refer to the figure Dance Town Academy.How will the interest earned on the chequing account be handled on a bank reconciliation?

A) It will be added to the balance from the company records.
B) It will be subtracted from the balance from the company records.
C) It will be added to the bank statement balance.
D) It will be subtracted from the bank statement balance.