Use the Following Data to Answer the Question Presented Below

question 145

Multiple Choice

Use the following data to answer the question presented below for Raines Corp.'s preparation of a bank reconciliation on October 31, 2016: $$\begin{array} { l r } \text { Bank statement balance } & \$ 30,700 \\\text { Raines' book balance (before adjustments) } & ? \\\text { Outstanding checks } & 4,200 \\\text { NSF checks } & 400 \\\text { Service charges } & 300 \\\text { Deposits in transit } & 3,100 \\\text { Interest earned on checking account } & 100\end{array}$$ ? ?What is the adjusted cash balance on October 31, 2016?

• A) $29,600
• B) $30,100
• C) $30,200
• D) $30,700

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Definitions:

Stock Dividends Distributable

Shares that have been declared as a dividend but have not yet been distributed to shareholders.

Corporate Form

A legal structure for organizing a business as a separate entity from its owners, providing limited liability and other legal benefits.

Shareholder's Liability

The financial responsibility of the shareholders of a company is typically limited to their investment in the company's shares.

Retained Earnings

Retained Earnings represent the cumulative amount of net income a company retains, rather than distributing to shareholders as dividends.