Longfellow Company gathered the following reconciling information in preparing its April bank reconciliation: The adjusted cash balance per books at April 30 is
A) ₤9,820.
B) ₤9,670.
C) ₤7,970.
D) ₤5,590.

Question

Longfellow Company gathered the following reconciling information in preparing its April bank reconciliation:  The adjusted cash balance per books at April 30 is
A) ₤9,820. 
B) ₤9,670. 
C) ₤7,970. 
D) ₤5,590.

Quizplus · Accepted Answer

We start with the adjusted bank balance of ₤8,040 and add any deposits in transit (₤850) and subtract any outstanding checks (₤360) to get the adjusted cash balance per bank of ₤8,530. 
Then we start with the cash balance per books of ₤9,320 and subtract any NSF checks (₤200), bank service charge (₤80), and interest earned on the bank account (₤270) to get the adjusted cash balance per books of ₤9,670. 
Therefore, the answer is B.

Longfellow Company Gathered the Following Reconciling Information in Preparing Its