Delco Construction
The following items relate to the company's March bank reconciliation:

-Refer to Delco Construction. What is net amount of the adjustments to the company's cash balance as a result of the bank reconciliation?
A)$400 increase
B)$400 decrease
C)$900 increase
D)No adjustments are needed.

Question

Delco Construction
The following items relate to the company's March bank reconciliation:
 
-Refer to Delco Construction. What is net amount of the adjustments to the company's cash balance as a result of the bank reconciliation?
A)$400 increase 
B)$400 decrease 
C)$900 increase 
D)No adjustments are needed.

Quizplus · Accepted Answer

The bank reconciliation shows a $400 decrease in the company's cash balance due to outstanding checks and a $500 increase due to interest earned. Therefore, the net amount of adjustments to the company's cash balance is a $400 decrease.

Delco Construction The Following Items Relate to the Company's March Bank Reconciliation