A company received a bank statement with a balance of $6,400. Reconciling items included a bookkeeper error of $400-a $400 check recorded as $800-two outstanding checks totaling $830, a service charge of $24, a deposit in transit of $260, and interest revenue of $21. What is the adjusted bank balance?

Question

Quizplus · Accepted Answer

The adjusted bank balance is calculated by starting with the bank statement balance and adjusting for reconciling items. Correct the bookkeeper's error by adding back the $400 overstatement, subtract the outstanding checks ($830), subtract the service charge ($24), add the deposit in transit ($260), and add the interest revenue ($21). The calculation is $6,400 - $400 (correction) - $830 - $24 + $260 + $21 = $5,830.

A Company Received a Bank Statement with a Balance of $6,400