The following information relates to the company's May bank reconciliation:
In addition, a check was recorded in the accounting records as $1,200 but the correct amount as recorded by the bank was only $1,000.
-Refer to Designs on You. What is the net amount of the adjustments to the company's cash balance as a result of the bank reconciliation process?
A)$210 increase
B)$135 increase
C)$135 decrease
D)$65 decrease

Question

The following information relates to the company's May bank reconciliation:
  In addition, a check was recorded in the accounting records as $1,200 but the correct amount as recorded by the bank was only $1,000.
-Refer to Designs on You. What is the net amount of the adjustments to the company's cash balance as a result of the bank reconciliation process?
A)$210 increase 
B)$135 increase 
C)$135 decrease 
D)$65 decrease

Quizplus · Accepted Answer

The net amount of adjustments results in a $135 increase to the company's cash balance after the bank reconciliation process. This is calculated by considering all the adjustments made during the reconciliation, such as deposits in transit, outstanding checks, bank errors, etc., that affect the cash balance.

The Following Information Relates to the Company's May Bank Reconciliation