The Following Information Is Needed to Reconcile the Cash Balance

question 55

Multiple Choice

The following information is needed to reconcile the cash balance for Baker's Dry Cleaning, Inc. * A deposit of $5,600 is in transit.
* Outstanding checks total $1,200.
* The book balance is $6,400 at February 28, 2017.
* The bookkeeper recorded a $1,800 check as $17,300 in payment of the current month's rent.
* The bank balance at February 28, 2017 was $16,130.
* A deposit of $200 was credited by the bank for $2,000.
* A customer's check for $3,100 was returned for nonsufficient funds.
* The bank service charge is $70.
What was the adjusted book balance?

• A) $18,800
• B) $16,200
• C) $18,730
• D) $18,870

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Definitions:

Equilibrium

A condition or state in which economic forces are balanced, such as the point where supply equals demand.

Market Clear

A situation in which the market reaches a state where quantity supplied equals quantity demanded, leaving no surplus or shortage.

Surplus

An excess of income or assets over expenditure or liabilities in a given period, typically a fiscal year, leading to available resources beyond what is required.

Supply Schedule

A table that shows the quantity of a good or service that producers are willing to supply at various prices.