Delco Construction The following items relate to the company's March bank reconciliation:
$\begin{array}{ll}
\text { Bank statement balance } &\$ 29,600 \
\text { Unadjusted cash balance ac cording to company records } &? \
\text { Deposit in trensit } &2,200 \
\text { Outstanding checks } &3,100 \
\text { Bank service charges } &200 \
\text { Interest earned on the bank account } &100 \
\text { Customen's NSF check returned by the bank } &300
\end{array}$
-Refer to Delco Construction.What is net amount of the adjustments to the company's cash balance as a result of the bank reconciliation?

Question

Delco Construction The following items relate to the company's March bank reconciliation:
$\begin{array}{ll}
 \text { Bank statement balance } &\$ 29,600 \
 \text { Unadjusted cash balance ac cording to company records } &? \
 \text { Deposit in trensit } &2,200 \
 \text { Outstanding checks } &3,100 \
 \text { Bank service charges } &200 \
 \text { Interest earned on the bank account } &100 \
 \text { Customen's NSF check returned by the bank } &300
\end{array}$ 
-Refer to Delco Construction.What is net amount of the adjustments to the company's cash balance as a result of the bank reconciliation?

Quizplus · Accepted Answer

To find the unadjusted cash balance according to the company records, we need to take the bank statement balance and subtract any deposits in transit and add any outstanding checks. 
$$29,600 - 2,200 + 3,100 =\$ 30,500$$
Now we need to adjust this balance for any bank service charges, interest earned, and NSF checks. 
$$30,500 - 200 + 100 - 300 =\$ 30,100$$
This means that there is a decrease of \$400 to the company's cash balance as a result of the bank reconciliation, so the correct choice is B.

Delco Construction the Following Items Relate to the Company's March