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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?

Recognize how sales discounts, returns, allowances, and freight costs affect the cost of merchandise and net sales.

Understand the classification and role of operating and non-operating expenses in financial statements.

Learn the process of closing accounts and the effects on financial statements.

Identify inventory shrinkage and its accounting treatment.

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