If the month-end bank statement shows a balance of $54,000, outstanding checks are $18,000, a deposit of $6,000 was in transit at month end, and a check for $750 was erroneously charged by the bank against the account, the correct balance in the bank account at month end is
A) $41,250.
B) $42,750.
C) $30,750.
D) $65,250.

Question

Quizplus · Accepted Answer

Starting balance = $54,000
Outstanding checks = -$18,000
Add deposit in transit = $6,000
Subtract erroneous charge = -$750
New balance = $41,250
Therefore, the correct balance in the bank account at month end is $41,250. Choice B is the correct answer.

If the Month-End Bank Statement Shows a Balance of $54,000