The Dinho Corporation Identified the Following Data When Preparing Their

question 44

Multiple Choice

The Dinho Corporation identified the following data when preparing their April bank reconciliation: $$\begin{array} { l r } \text { Bank statement balance } & \$ 45,000 \\\text { Dinho's book balance (before adjustments) } & ? \\\text { Outstanding checks } & 4,500 \\\text { NSF checks } & 1,400 \\\text { Service charges } & 300 \\\text { Deposits in transit } & 5,000 \\\text { Interest earned on checking account } & 25\end{array}$$ In addition, Dinho incorrectly recorded a deposit in its books in the amount of $1,000.The correct amount was recorded by the bank as $1,200. What is the net amount of the adjustment to Dinho's cash balance as a result of the bank reconciliation?

• A) $1,675 increase
• B) $1,700 increase
• C) $1,675 decrease
• D) $1,475 decrease

---

Definitions:

Thrust Faults

A type of fault in which one rock layer is pushed up and over another, often related to compressional tectonic forces.

Sedimentary Rocks

Rocks formed by the accumulation and compaction of sediment, often containing fossils and layers that reveal Earth's past environments.

Shale Gas

Natural gas trapped within a relatively nonpermeable shale body, extracted by hydraulic fracturing.

Fine-grained

Describing materials or minerals that have small, compact particles or crystals, often used in the context of rocks or sediment.