In Preparing Its Bank Reconciliation for the Month of April

question 88

Multiple Choice

In preparing its bank reconciliation for the month of April 2014, Henke, Inc. has the following information available. What should be the correct balance of cash at April 30, 2014?

• A) $34,370
• B) $33,940
• C) $33,490
• D) $33,470

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Definitions:

Deficit

A debit balance in the retained earnings account.

Retained Earnings

The portion of net earnings not distributed as dividends but retained by the company to reinvest in its core business or to pay debt.

Treasury Stock

Shares that were once issued and outstanding but were subsequently repurchased by the company, reducing the number of shares on the market.

Organizational Expenses

Costs related to the formation and operation of a business entity, such as legal fees, accounting services, and incorporation fees.