A Company Received a Bank Statement with a Balance of $5

question 115

Multiple Choice

A company received a bank statement with a balance of $5 350. Reconciling items included a bookkeeper error of $200 (a $300 cheque recorded as $500) , two outstanding cheques totalling $720, a service charge of $15, a deposit in transit of $180, and interest revenue of $21. What is the adjusted bank balance?

• A)$4 810
• B)$4 636
• C)$4 610
• D)$5 016

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Definitions:

Semiannually

Semiannually refers to an occurrence that happens twice a year, typically at six-month intervals.

Yield to Maturity

The total return anticipated on a bond if it is held until the date it matures.

Annual Coupon

The annual interest payment received by bondholders, expressed as a percentage of the bond's face value.

Par Value

The face value of a bond or stock, as designated by the issuing company, which may not reflect the market value.