Derek Company gathered the following reconciling information in preparing its September bank reconciliation:

Question

Quizplus · Accepted Answer

The reconciling items that will be added to the book balance are: deposits in transit ($3,800) and interest earned ($250). The reconciling items that will be subtracted from the book balance are outstanding checks ($3,000) and bank service charges ($90). Adding the deposits in transit and interest earned to the book balance and subtracting the outstanding checks and bank service charges from the book balance results in an adjusted bank balance of $23,060. Therefore, the correct answer is (C) $3,060, which is the amount by which the book balance exceeds the adjusted bank balance.

Derek Company Gathered the Following Reconciling Information in Preparing Its