The following information is needed to reconcile the cash balance for Gourmet Catering Services. *A deposit of $ \$ 5,800 $ is in transit.
*Outstanding checks total $ \$ 1,200 $.
*The book balance is $ \$ 6,400 $ at February 28,2019 .
*The bookkeeper recorded a $ \$ 1,700 $ check as $ \$ 17,200 $ in payment of the current month's rent
*The bank balance at February 28,2019 was $ \$ 15,640 $.
*A deposit of $ \$ 200 $ was credited by the bank for $ \$ 2,000 $
*A customer's check for $ \$ 3,400 $ was returned for nonsufficient funds.
*The bank service charge is $ \$ 60 $.
What was the adjusted book balance?
A) $18,500
B) $18,440
C) $18,560
D) $15,700

Question

The following information is needed to reconcile the cash balance for Gourmet Catering Services. *A deposit of $ \$ 5,800 $ is in transit.
*Outstanding checks total $ \$ 1,200 $.
*The book balance is $ \$ 6,400 $ at February 28,2019 .
*The bookkeeper recorded a $ \$ 1,700 $ check as $ \$ 17,200 $ in payment of the current month's rent
*The bank balance at February 28,2019 was $ \$ 15,640 $.
*A deposit of $ \$ 200 $ was credited by the bank for $ \$ 2,000 $
*A customer's check for $ \$ 3,400 $ was returned for nonsufficient funds.
*The bank service charge is $ \$ 60 $.
 What was the adjusted book balance?
A) $18,500
B) $18,440
C) $18,560
D) $15,700

Quizplus · Accepted Answer

The adjusted book balance is calculated by starting with the book balance and making the necessary adjustments for errors and omissions. Starting with the book balance of $6,400, add the error in recording the rent check ($17,200 - $1,700 = $15,500 too much subtracted), subtract the error in the deposit recorded ($2,000 - $200 = $1,800 too much added), subtract the customer's check returned for nonsufficient funds ($3,400), and subtract the bank service charge ($60). This results in an adjusted book balance of $18,440.

The Following Information Is Needed to Reconcile the Cash Balance $5,800 \$ 5,800 $5,800

The Following Information Is Needed to Reconcile the Cash Balance $\$ 5,800$