The following information is available for Ellen's Fashions, Inc. for the current month. $$\begin{array} { | l | r | }
\hline \text { Book balance end of month } & \$ 7,100 \
\hline \text { Outstanding checks } & 700 \
\hline \text { Deposits in transit } & 4,000 \
\hline \text { Service charges } & 100 \
\hline \text { Interest revenue } & 50 \
\hline
\end{array}$$ What is the adjusted book balance on the bank reconciliation?

Question

The following information is available for Ellen's Fashions, Inc. for the current month. $$\begin{array} { | l | r | } 
\hline \text { Book balance end of month } & \$ 7,100 \
\hline \text { Outstanding checks } & 700 \
\hline \text { Deposits in transit } & 4,000 \
\hline \text { Service charges } & 100 \
\hline \text { Interest revenue } & 50 \
\hline
\end{array}$$ What is the adjusted book balance on the bank reconciliation?

Quizplus · Accepted Answer

The adjusted book balance is calculated as follows: Beginning book balance ($6,100) + Deposits in transit ($2,500) - Outstanding checks ($1,550) + Bank errors ($1,000) = $7,050. Therefore, the answer is D) $7,050.

The Following Information Is Available for Ellen's Fashions, Inc What Is the Adjusted Book Balance on the Bank Reconciliation