The following information is needed to recondile the cash balance for Discount D

Question

The following information is needed to recondile the cash balance for Discount Dry Cleaning, Inc. *A deposit of $5,600 is in transit. Outstanding checks total $1,500. * The book balance is $6,300 at February 28, 2019. The bookkeeper recorded a $1,800 check as $17,100 in payment of the current month's rent. The bank balance at February 28, 2019 was $15,720. A deposit of $200 was credited by the bank for $2,000. A customer's check for $3,500 was returned for nonsufficient funds. The bank service charge is $80. What was the adjusted book balance? A. $15,800 OB. $18,100 C. $18,020 O D. $18,180

Explanation / Answer

Calculation of adjusted book balance at February 28,2019 Cash book balance at February 28,2019 $6,300 Add : Payment check error $15,300 Less : Check returned $3,500 Less : Bank Service charge $80 Adjusted Book balance $18,020 The answer is Option C.

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