Vida Corporation Gathered the Following Reconciling Information in Preparing Its

question 37

Multiple Choice

Vida Corporation gathered the following reconciling information in preparing its July bank reconciliation: $$\begin{array} { | l | r | } \hline \text { Cash balance per books, July 31 } & \$ 3,500 \\\hline \text { Deposits in transit } & 150 \\\hline \text { Electronic collection of account receivable } & 850 \\\hline \text { Bank charge for cheque printing } & 20 \\\hline \text { Outstanding cheques } & 2,000 \\\hline \text { NSF cheque } & 170 \\\hline\end{array}$$ The adjusted cash balance per books at July 31 is

• A) $4,160.
• B) $4,010.
• C) $2,460.
• D) $2,310.

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Definitions:

Retained Earnings

The accumulated net income of a company that has not been distributed to shareholders as dividends.

Paid-in Capital

Funds raised by a company through the issuance of shares to shareholders, representing the funding the company has received from equity rather than from ongoing operations.

Stockholders' Equity

The ownership interest of stockholders in a company, represented by the company's assets minus liabilities.

Treasury Stock

Refers to shares that were once part of the outstanding shares and have been bought back by the issuing company, reducing the amount of stock on the open market.