The May Bank Statement for Tax Services Shows a Balance

question 57

Multiple Choice

The May bank statement for Tax Services shows a balance of $5,700, but the balance per books shows a cash balance of $7,200. Other information includes: 1. A check for $200 to pay the electric bill was recorded on the books as $30.
2) Included on the bank statement was a note collected by the bank for $440 plus interest of $20.
3) Checks outstanding totaled $270.
4) Bank service charges were $50.
5) Deposits in transit were $2,010.
Which item(s) should be subtracted from the balance per books?

• A) Deposits in transit
• B) Checks outstanding and bank service charge
• C) Bank service charge and the note collected by the bank
• D) None of the above is correct.

---

Definitions:

Acceptance Phase

The stage in the process of grief or adjustment where an individual acknowledges reality and learns to live with it.

Febrile

Relating to or characterized by fever.

Reduce Salt

The dietary practice of decreasing sodium intake to improve health outcomes, particularly in the context of hypertension.

Heart Failure

A medical condition in which the heart is unable to pump blood effectively, leading to insufficient blood flow to meet the body's needs.