Quayle Company gathered the following reconciling information in preparing its August bank reconciliation: The adjusted cash balance per books on August 31 is
A) $9,820.
B) $9,520.
C) $6,120.
D) $6,420.

Question

Quayle Company gathered the following reconciling information in preparing its August bank reconciliation:  The adjusted cash balance per books on August 31 is
A) $9,820. 
B) $9,520. 
C) $6,120. 
D) $6,420.

Quizplus · Accepted Answer

Starting cash balance per books: $10,000
 
Add: Deposits in transit: $4,000
 
Adjusted cash balance per books: $14,000

Starting cash balance per bank statement: $7,500
 
Add: EFT collection: $1,500
Add: Interest earned: $20
 
Less: NSF check: $200
Less: Bank service charge: $100
Less: Outstanding checks: $3,300
 
Adjusted cash balance per bank statement: $5,420

The adjusted cash balance per books is $9,820 ($14,000 - $4,180 = $9,820). Therefore, the correct choice is A.

Quayle Company Gathered the Following Reconciling Information in Preparing Its