The following information is available for Andersen Company for the month ending 30 June 2014. • Balance per the bank statement is $10 241.43.
• Balance per books is $9 745.06.
• cheque #506 for $1 948.52 and cheque #510 for $1 800.25 were not shown on the 30 June bank statement.
• A deposit in transit of $5 113.40 had not been received by the bank when the bank statement was generated.
• A bank debit memo indicated a dishonoured cheque in the amount of $79 written by Bruce Garrett to Andersen Company on 13 June.
• A bank credit memo indicated a bill collected by the bank of $1 900 and interest revenue of $75 on 20 June.
• The bank statement indicated service charges of $35.
What is the adjusted book balance?
A)$11 606.06
B)$7 971.29
C)$11 109.69
D)$7 884.06

Question

Quizplus · Accepted Answer

The adjusted book balance is $11,606.06. This is calculated by adding the deposit in transit ($5,113.40) and the bank credit memo ($1,900 + $75) to the book balance ($9,745.06), and then subtracting the outstanding cheques ($1,948.52 + $1,800.25) and the dishonoured cheque ($79) and service charges ($35).

The Following Information Is Available for Andersen Company for the Month