Dinho Corporation identified the following data when preparing its April bank reconciliation: $$\begin{array} { l r }
\text { Bank statement balance } & \$ 45,000 \
\text { Dinho's book balance (before adjustments) } & ? \
\text { Outstanding checks } & 4,500 \
\text { NSF checks } & 1,400 \
\text { Service charge } & 300 \
\text { Deposits in transit } & 5,000 \
\text { Interest earned on checking account } & 25
\end{array}$$
-In addition,Dinho incorrectly recorded a deposit in its books in the amount of $1,000.The correct amount was recorded by the bank as $1,200.
What is the adjusted cash balance at the end of April?

A)$44,300
B)$45,500
C)$45,000
D)$45,700

Question

Dinho Corporation identified the following data when preparing its April bank reconciliation: $$\begin{array} { l r } 
\text { Bank statement balance } & \$ 45,000 \
\text { Dinho's book balance (before adjustments) } & ? \
\text { Outstanding checks } & 4,500 \
\text { NSF checks } & 1,400 \
\text { Service charge } & 300 \
\text { Deposits in transit } & 5,000 \
\text { Interest earned on checking account } & 25
\end{array}$$
-In addition,Dinho incorrectly recorded a deposit in its books in the amount of $1,000.The correct amount was recorded by the bank as $1,200.
What is the adjusted cash balance at the end of April?

A)$44,300
B)$45,500
C)$45,000
D)$45,700

Quizplus · Accepted Answer

The error in recording the deposit means that Dinho's books are understated by $200 ($1,200 - $1,000). To correct this, you would add $200 to Dinho's book balance to match the correct bank amount, leading to the adjusted cash balance of $45,500.

Dinho Corporation Identified the Following Data When Preparing Its April