The following data are available for Remas Designs for October: $$\begin{array} { | l | r | }
\hline \text { Book balance, October } 31 & \$ 5,600 \
\hline \text { Outstanding cheques } & 584 \
\hline \text { Deposits in transit } & 2,500 \
\hline \text { Service charges } & 75 \
\hline \text { Interest revenue } & 25 \
\hline
\end{array}$$ What is the adjusted book balance on October 31 for Remas Designs based on the above data?
A)$5,500
B)$5,550
C)$7,466
D)$4,966

Question

The following data are available for Remas Designs for October: $$\begin{array} { | l | r | } 
\hline \text { Book balance, October } 31 & \$ 5,600 \
\hline \text { Outstanding cheques } & 584 \
\hline \text { Deposits in transit } & 2,500 \
\hline \text { Service charges } & 75 \
\hline \text { Interest revenue } & 25 \
\hline
\end{array}$$ What is the adjusted book balance on October 31 for Remas Designs based on the above data?
A)$5,500
B)$5,550
C)$7,466
D)$4,966

Quizplus · Accepted Answer

To calculate the adjusted book balance, start with the book balance and adjust for outstanding checks, deposits in transit, service charges, and interest revenue. The calculation is as follows: $5,600 (book balance) - $584 (outstanding checks) + $2,500 (deposits in transit) - $75 (service charges) + $25 (interest revenue) = $5,550.

The Following Data Are Available for Remas Designs for October