Tang Company Assembled the Following Information in Completing Its June

question 116

Multiple Choice

Tang Company assembled the following information in completing its June bank reconciliation: balance per bank HK$21,460; outstanding checks HK$12,325; deposits in transit HK$13,750; NSF check HK$2,240; bank service charge HK$85; cash balance per books HK$25,210.As a result of this reconciliation, Tang will

• A)Reduce its cash account by $3,750.
• B)Increase its cash account by $1,425.
• C)Increase its cash account by $2,240.
• D)Reduce its cash account by ₤2,325.

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Decision-Making Process

A step-by-step approach to making choices among various options with the aim of reaching the best outcome.