The David Corporation\'s checkbook balance was $420,600 on December 31. Accordin

Question

The David Corporation's checkbook balance was $420,600 on December 31. According to its December 31 bank statement, the company's bank balance was $493,000. The company determined its outstanding checks were $89,000 and its outstanding deposits were $16,000 on December 31. Its bank statement showed the bank charged the company a $1,400 service charge and paid the company $800 interest in December. Determine the company's December 31 adjusted checkbook balance.

a. $347,600

b. $493,000

c. $420,000

d. $492,400

Explanation / Answer

Answer:-

(b) $4,93,000

Computation of Company's December 31 adjusted checbook balance is as under:-

checkbook balance was $420,600

Add:- outstanding checks $89,000

Less:- outstanding deposits $16,000

Less:- bank charged $1,400

Add:- Interest $800

Total company's Adjusted Chebook balance  December 31 is $4,93,000

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