The May Bank Statement for Consulting Services Shows a Balance

question 29

Multiple Choice

The May bank statement for Consulting Services shows a balance of $7300,but the balance per books shows a cash balance of $8,980.Other information includes:
1) A check 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 $400 plus interest of $30.
3) Checks outstanding totaled $260.
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)Outstanding check
• C)Bank service charge
• D)Note collected by the bank

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Definitions:

Native Japanese Subjects

Refers to the indigenous people of Japan and their societal roles, cultures, and histories prior to extensive foreign influence.

Supply-of-loanable-funds

The availability of funds for borrowing, influenced by savings and influenced by interest rates in the financial market.

Demand-for-loanable-funds

The desire or willingness of consumers and businesses to borrow money at given interest rates, often depicted in economics as a curve.

Budget Deficit

occurs when a government's expenditures exceed its revenues during a specific period, leading to borrowing or debt accumulation.