Dreammaker Kitchens The following information relates to the company's November bank reconciliation:
$\begin{array}{ll}
\text { Bank statement balance } &\$ 10,700 \
\text { Unadjusted cash balance from the companys records } &? \
\text { Deposit in trensit } &2,100 \
\text { Outstanding checks } &1,200 \
\text { Bank service charges } &300 \
\text { Interest earned on the bank account } &100 \
\text { Customen's NSF check returned by the bank } &400
\end{array}$
-Refer to Dreammaker Kitchens.What is the company's adjusted cash balance on November 30th?
A)$12,200
B)$11,600
C)$10,700
D)$10,100

Question

Dreammaker Kitchens The following information relates to the company's November bank reconciliation:
$\begin{array}{ll}
 \text { Bank statement balance } &\$ 10,700 \
 \text { Unadjusted cash balance from the companys records } &? \
 \text { Deposit in trensit } &2,100 \
 \text { Outstanding checks } &1,200 \
 \text { Bank service charges } &300 \
 \text { Interest earned on the bank account } &100 \
 \text { Customen's NSF check returned by the bank } &400
\end{array}$ 
-Refer to Dreammaker Kitchens.What is the company's adjusted cash balance on November 30th?
A)$12,200
B)$11,600
C)$10,700
D)$10,100

Quizplus · Accepted Answer

To find the adjusted cash balance, we start with the bank statement balance of $10,700 and subtract the outstanding checks of $1,200 to get $9,500. 
Then we add the deposit in transit of $2,100 to get $11,600. 
Next, we need to adjust for the bank service charges of $300 and add the interest earned on the bank account of $100 to get a total adjustment of -$200. 
Finally, we need to adjust for the customer's NSF check returned by the bank of $400, which means we need to subtract $400 from our balance. 
Therefore, the company's adjusted cash balance on November 30 is $11,600 ($9,500 + $2,100 - $200 - $400 = $11,600).

Dreammaker Kitchens the Following Information Relates to the Company's November