The May Bank Statement for Accounting Services Shows a Balance

question 30

Multiple Choice

The May bank statement for Accounting Services shows a balance of $6,300, but the balance per books shows a cash balance of $7,980. Other information includes 1. A cheque for $200 to pay the electric bill was recorded on the books as $20.
2) Included on the bank statement was a note collected by the bank for $300 plus interest of $30.
3) Cheques outstanding totaled $360.
4) Bank service charges were $50.
5) Deposits in transit were $2,140.
Which item should be added to the company's book balance during the bank reconciliation?

• A) Deposit in transit
• B) Cheque outstanding
• C) Bank service charge
• D) Note collected by the bank

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Definitions:

Shareholders' Profits

The portion of a company's earnings that is distributed to its shareholders.

Local Community

A group of people living in the same place or having a particular characteristic in common, often within a smaller area that facilitates face-to-face interaction.

Blended Family

Two adults and their children. Because of divorce, separation, death, or adoption, the children are the offspring of other biological parents or of just one of the adults raising them.

Natural Family

An alternative term often used to refer to a nuclear family, emphasizing biological relationships within the family unit.