Carla Company's cash balance at the end of the month was $6,500. After comparing the company's records with the monthly bank statement, Carla's accountant identified the following reconciling items: outstanding checks, $800; deposits in transit, $700; bank service charge, $30; NSF check, $500. What is the adjusted book balance?
A) $6,600
B) $5,970
C) $6,370
D) The adjusted book balance cannot be determined from this information.

Question

Quizplus · Accepted Answer

The adjusted book balance is calculated by subtracting the bank service charge and the NSF check from the cash balance: $6,500 - $30 - $500 = $5,970.

Carla Company's Cash Balance at the End of the Month