Thompson Corporation Gathered the Following Reconciling Information in Preparing Its

question 21

Multiple Choice

Thompson Corporation gathered the following reconciling information in preparing its October bank reconciliation: $$\begin{array} { | l | l | } \hline \text { Cash balance per bank, } 10 / 31 & \\\hline \text { Note receivable collected by bank } & \\\hline \text { Outstanding checks } & \\\hline \text { Deposits-in-transit } & \\\hline \text { Bank service charge } & \\\hline \text { NSF check } & \\\hline\end{array}$$ Using the above information, determine the cash balance per books before adjustments) for the Thompson Corporation.

• A) $11,050
• B) $19,450
• C) $15,950
• D) $11,150

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Definitions:

Production Equipment

Machines and tools used in the manufacturing process to produce goods.

Liability Insurance

A type of insurance that provides protection against claims resulting from injuries and damage to people and/or property.

Rental Contract

A written or verbal agreement between a lessor and lessee that stipulates the terms and conditions under which a property, vehicle, or piece of equipment is rented.

Prepaid Insurance

An asset account representing insurance payments made in advance for coverage extending beyond the current accounting period.