On October 31,2007,the bank's records say that your company has $12,956.73 in its chequing account.You are aware of three outstanding cheques for a total of $2,112.19.During October 2007,the bank rejected two deposited cheques from customers totalling $654.19 because of insufficient funds and charged you $12.00 in service fees.You had not yet received notice about the bad cheques,but you were aware of and have recorded the $12.00 of service fees.Prior to adjustment on October 31,2007,your Cash account would have a balance of:

Question

Quizplus · Accepted Answer

To find the prior balance of the Cash account, we need to add the recorded balance in the bank statement ($12,956.73) and subtract the outstanding cheques ($2,112.19) and the service fees ($12.00). This gives us a prior balance of $10,832.54 ($12,956.73 - $2,112.19 - $12.00). Therefore, the correct answer is option C, which is $11,498.73 after rounding to the nearest cent.

On October 31,2007,the Bank's Records Say That Your Company Has