If the month-end bank statement shows a balance of $36,000, outstanding checks are $12,000, a deposit of $4,000 was in transit at month end, and a check for $500 was erroneously charged by the bank against the account, the correct balance in the bank account at month end is
A) $27,500.
B) $28,500.
C) $20,500.
D) $43,500.

Question

Quizplus · Accepted Answer

Starting Balance (per bank statement): $36,000 
Outstanding Checks: $12,000 
Add: Deposit in Transit: $4,000 
Adjusted Balance: $28,000

However, there is an error on a check for $500 that was charged to the account by mistake.

Adjusted Balance: $28,000 
Add: Erroneous Charge: $500 
Correct Balance: $28,500

Therefore, the correct balance in the bank account at month-end is $28,500. Option B is the correct answer.

If the Month-End Bank Statement Shows a Balance of $36,000