The following information is available for Juno Company for the month ending June 30, 2019.
• Balance as per the bank statement is $12,000.
• Balance as per books is $10,400.
• Check #506 for $1,400 and check #510 for $800 were not shown on the June 30, bank statement.
• A deposit in transit of $2,541 had not been received by the bank when the bank statement
$$\text { was generated. }$$ • A bank debit memo indicated an NSF check for $90 written by Jane Smith to Juno Company
$$\text { on June } 13$$ • A bank credit memo indicated a note collected by the bank of $2,000 and interest revenue
$$\text { of } \$ 51 \text { on June } 20$$ • The bank statement indicated service charges of $20.
What is the adjusted book balance?

Question

The following information is available for Juno Company for the month ending June 30, 2019.
 • Balance as per the bank statement is $12,000.
• Balance as per books is $10,400.
• Check #506 for $1,400 and check #510 for $800 were not shown on the June 30, bank statement.
• A deposit in transit of $2,541 had not been received by the bank when the bank statement
$$\text { was generated. }$$ • A bank debit memo indicated an NSF check for $90 written by Jane Smith to Juno Company
$$\text { on June } 13$$ • A bank credit memo indicated a note collected by the bank of $2,000 and interest revenue
$$\text { of } \$ 51 \text { on June } 20$$ • The bank statement indicated service charges of $20.
What is the adjusted book balance?

Quizplus · Accepted Answer

Starting balance per books = $10,400
Add deposit in transit = $2,541
Add note collected by bank and interest revenue =$2,000
Subtract NSF check = $90
Subtract service charges = $20
Adjusted book balance = $12,831
But, as two checks were not shown on the bank statement, we need to subtract their total amount from the adjusted book balance to get the final answer:
Adjusted book balance - (check #506 + check #510) = $12,831 - ($1,400 + $800) = $10,631
So, the adjusted book balance is $10,631, which is not given in any of the options. However, option B is closest to the adjusted book balance with a difference of $10. Therefore, the best choice is B.

The Following Information Is Available for Juno Company for the Month