A Ladd Company Gathered the Following Reconciling Information in Preparing

question 5

Multiple Choice

A. Ladd Company gathered the following reconciling information in preparing its April bank reconciliation: $\begin{array}{lr}\text { Cash balance per books, } 4 / 30 & \$ 18,900 \\\text { Deposits in transit } & 2,700 \\\text { Notes receivable and interest collected by bank } & 6,600 \\\text { Bank charge for check printing } & 130 \\\text { Outstanding checks } & 13,500 \\\text { NSF check } & 1,620\end{array}$ The adjusted cash balance per books on April 30 is

• A) $12,950.
• B) $14,050.
• C) $22,490.
• D) $23,750.

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Definitions:

Legally Insolvent

The condition of being unable to pay debts as they fall due or having liabilities that exceed the value of assets.

Fiduciary Duty

A legal obligation to act in the best interest of another party, usually in a financial context.

Operation of Law

Changes in rights or obligations that occur automatically due to established legal rules, without the need for action or agreement by individuals.

Goodwill Compensation

Financial compensation for intangible assets such as brand reputation, customer loyalty, and other non-physical assets that contribute to a business's value.