The following information is available for Andersen Company for the month ending June 30, 2019. • 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 June 30 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 an NSF cheque in the amount of $79 written by Bruce Garrett to Andersen Company on June 13.
• A bank credit memo indicated a note collected by the bank of $1,900 and interest revenue of $75 on June 20.
• The bank statement indicated service charges of $35.
What is the adjusted book balance?
A)$7,884.06
B)$11,606.06
C)$11,109.69
D)$7,971.29

Question

Quizplus · Accepted Answer

The adjusted book balance is calculated by starting with the balance per books and making the necessary adjustments for items not yet recorded in the company's books. Here's the calculation:1. Start with the balance per books: $9,745.06.2. Add the note collected by the bank and interest revenue (since these increase the company's cash balance): $1,900 + $75 = $1,975.3. Subtract the NSF cheque (since this decreases the company's cash balance): -$79.4. Subtract the bank service charges (since these also decrease the company's cash balance): -$35.So, the adjusted book balance is $9,745.06 + $1,975 - $79 - $35 = $11,606.06.

The Following Information Is Available for Andersen Company for the Month