The Set of Items Below Was Identified in Preparing a Bank

question 143

Multiple Choice

The set of items below was identified in preparing a bank reconciliation for Mars Corp.as of August 31, 2016. $$\begin{array} { l r } \text { Bank statement balance } & \$ 19,500 \\\text { Mars's book balance (before adjustments) } & ? \\\text { Outstanding checks } & 2,700 \\\text { Customer's NSF checks } & 350 \\\text { Service Charges } & 100 \\\text { Deposits in transit } & 1,000 \\\text { Interest earned on checking account } & 60\end{array}$$ ? Mars Corp.'s balance per books before the reconciliation is

• A) $17,410
• B) $17,900
• C) $18,190
• D) $18,310

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Definitions:

Simple Interest Rates

Interest calculated only on the principal amount of a loan or deposit, without compounding over time.

Outstanding Balance

The amount of money owed on a loan, credit card, or any other debt that remains unpaid.

Student Loans

Student loans are borrowed funds provided to students to cover education-related expenses, which must be repaid with interest over time.

Simple Interest

Interest calculated on the principal amount of a loan or deposit, without compounding.