Use the below information about Orange Corporation to answer questions 8 and 9.

Question

Use the below information about Orange Corporation to answer questions 8 and 9. Orange Corporation's 1/3 1/18 Cash t-account shows a balance of $90,600, and their bank statement dated 1/3 1/18 shows a balance of $88,000. interest income of $600. Orange Corporation has written S5,200 worth of checks that have not yet cleared the bank Orange Corporation wrote a check that cleared the bank. Orange forgot to post the related journal entry to the .According to the most recent bank statement, Orange Corporation has not yet recorded bank fees of $400 or t-accounts. The journal entry that Orange forgot to post was: Dr. Wages Expense 4,600 and Cr. Cash 4,600. Orange Corporation has deposits of $3,400 that do not yet appear on the bank statement. 8. Which of the following statements about Orange Corporation's 1/31/18 bank reconciliation is TRUE? a. b· c. d· The bank fee should be added to the Company's Book balance. The interest income should be subtracted from Company's Book balance. The outstanding checks should be subtracted from the Company's Book balance. The deposits in transit should be subtracted from the Company's Book balance. 9. The adjusted Cash balance on Orange Corporation's 1/31/18 bank reconciliation should be a. $85,000 b. $86,200 c. $88,000 d. $90,600

Explanation / Answer

Solution-

8- ( d) The deposits in transit should be subtracted from the company,s Book Blance.

9. (b) $86,200

Refer Workings Below

Balance as per Bank Statement on 1/31/2018: $ 88,000

Adjustments:

Balance as per Books on 1/31/2018: $ 90,600

Adjustements:

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