The following data were gathered to use in reconciling the bank account of Savannah Company: What is the adjusted balance on the bank reconciliation?

Question

The following data were gathered to use in reconciling the bank account of Savannah Company:​  What is the adjusted balance on the bank reconciliation?

Quizplus · Accepted Answer

The adjusted balance on the bank reconciliation is calculated by adding the ending balance per bank statement and deducting any outstanding checks or adding any deposits in transit. The ending balance per bank statement is $14,720. The outstanding checks are $1,540 ($800+$740). There are no deposits in transit. Therefore, the adjusted balance is $14,720 - $1,540 = $13,180. However, the company also recorded a bank service charge of $85 and an NSF check from a customer of $990, which should be deducted from the adjusted balance. So, the final adjusted balance is $13,180 - $85 - $990 = $15,095. Therefore, the best choice is C, $15,095.

The Following Data Were Gathered to Use in Reconciling the Bank