The Checkbook Balance of Lester Co

question 68

Multiple Choice

The checkbook balance of Lester Co. was $922.55. The bank statement revealed a balance of $3,881.14. The bank statement showed interest earned of $77 and a service charge of $38.22, along with a deposit in transit of $9,555.88. Outstanding checks totaled $6,142.88. The bookkeeper in further analyzing the bank statement noticed a collection of a note by the bank for $6,815.00. Lester Co. forgot to deduct a check for $482.19 during the month. The reconciled balance is:

• A)$7,924.14
• B)$7,429.18
• C)$7,294.14
• D)$7,429.14
• E)None of these

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Definitions:

Savings Banks

Financial institutions primarily engaged in accepting savings deposits and making loans and other investments.

Money Market Mutual Funds

Investment funds that pool money from investors to purchase short-term, high-quality debt securities like treasury bills and commercial paper.

M1

A category of the money supply that includes all physical money like coins and currency, as well as demand deposits and checking accounts.

Commercial Banks

Financial institutions that offer a wide range of services such as accepting deposits, issuing loans, and providing basic investment products to the public and businesses.