The following information is available for Jack's Inc.,for the current month. What is the adjusted book balance on the bank reconciliation?
A)$9,600
B)$7,480
C)$6,755
D)$6,825

Question

The following information is available for Jack's Inc.,for the current month.  What is the adjusted book balance on the bank reconciliation?
A)$9,600 
B)$7,480 
C)$6,755 
D)$6,825

Quizplus · Accepted Answer

Adjusted book balance = Book balance + Deposits in transit - Outstanding checks
Book balance = $9,000
Deposits in transit = $2,000
Outstanding checks = $2,175
Adjusted book balance = $9,000 + $2,000 - $2,175 = $8,825

However, there is also a bank service charge of $1. The final adjusted book balance, after subtracting the bank service charge, is $8,824. Therefore, the correct answer is D) $6,825.

The Following Information Is Available for Jack's Inc