A company's Cash account shows an ending balance of $4,600. Reconciling items included a bookkeeper error of $130 (a $500 check recorded as $630), two outstanding checks totaling $830, a service charge of $25, a deposit in transit of $250, and interest revenue of $30. What is the adjusted book balance?

Question

Quizplus · Accepted Answer

Starting with the ending Cash balance of $4,600:

- Adding: Deposit in Transit of $250
Adjusted Balance: $4,850

- Subtracting: Outstanding checks totaling $830
Adjusted Balance: $4,020

- Subtracting: Bookkeeper error of $130
Adjusted Balance: $3,890

- Subtracting: Service charge of $25
Adjusted Balance: $3,865

- Adding: Interest revenue of $30
Adjusted Balance: $3,895

Therefore, the adjusted book balance is $3,895, which corresponds with choice (C).

A Company's Cash Account Shows an Ending Balance of $4,600