The Following Information Is Available for Andersen Company for the Month

question 54

Multiple Choice

The following information is available for Andersen Company for the month ending June 30, 2019. • Balance per the bank statement is $10,241.43.
• Balance per books is $9,745.06.
• Cheque #506 for $1,948.52 and cheque #510 for $1,800.25 were not shown on the June 30 bank statement.
• A deposit in transit of $5,113.40 had not been received by the bank when the bank statement was generated.
• A bank debit memo indicated an NSF cheque in the amount of $79 written by Bruce Garrett to Andersen Company on June 13.
• A bank credit memo indicated a note collected by the bank of $1,900 and interest revenue of $75 on June 20.
• The bank statement indicated service charges of $35.
What is the adjusted book balance?

• A)$7,884.06
• B)$11,606.06
• C)$11,109.69
• D)$7,971.29

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Definitions:

Marketability Risk

The risk that an asset cannot be sold quickly in the market without impacting its price significantly.

Marketable Securities Portfolio

A collection of liquid financial instruments that can be quickly converted into cash, held by an individual or entity.

Treasury Bills

Treasury bills are short-term government securities with maturities ranging from a few days to 52 weeks, issued at a discount to face value.

Maturity Risk

The danger that an investment’s value will change due to a change in the absolute level of interest rates, typically affecting fixed-income securities as they approach maturity.