The Following Information Is Needed to Reconcile the Cash Balance

question 58

Multiple Choice

The following information is needed to reconcile the cash balance for Woods Paper Products. • A deposit of $5,794.62 is in transit.
• Outstanding cheques total $1,533.25.
• The book balance is $5,695.62.
• The bookkeeper recorded a $1,524.00 cheque as $15,240 in payment of the current month's rent.
• The bank balance at February 28, 2008 was $16,500.25.
• A deposit of $300 was credited by the bank for $3,000.
• A customer's cheque for $1,280 was returned for non-sufficient funds.
• The bank service charge is $70.
What was the adjusted bank balance?

• A)$6,472.38
• B)$18,061.62
• C)$9,355.63
• D)$14,938.88

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Definitions:

Decision Maker

An individual or group responsible for making choices or judgments, particularly in a professional or organizational context.

Total Profit Maximization

The process or strategy of adjusting production and sales to achieve the highest possible profit.

Marginal Benefit

The additional satisfaction or utility received from consuming one more unit of a good or service.

Total Profit

The total amount of money gained from a business activity after all expenses and costs have been subtracted from total revenue.