The Following Information Is Available for Jade Company for the Month

question 94

Multiple Choice

The following information is available for Jade Company for the month ending 30 June 2016. ∙ Balance as per the bank statement is $11,700.
∙ Balance as per books is $10,400.
∙ Cheque #506 for $1300 and cheque #510 for $800 were not shown on the 30 June bank statement.
∙ A deposit in transit of $3000 had not been received by the bank when the bank statement was generated.
∙ A bank debit memo indicated a dishonoured cheque for $70 written by Jane Smith to Jade Company on 13 June.
∙ A bank credit memo indicated bank collections of $2200 and interest revenue of $52 on 20 June.
∙ The bank statement indicated service charges of $20.
What is the adjusted book balance?

• A)$8352
• B)$8300
• C)$12,562
• D)$12,582

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Definitions:

Operating Cash Flow

The cash an organization generates from its normal business operations, indicating its ability to generate sufficient positive cash flow to maintain and grow its operations.

Interest Expense

Cost incurred by an entity for borrowed funds, which may include payments on loans, bonds, and lines of credit.

Tax Rate

The proportion of income that the government takes from a person or company as taxes.

Incremental Cash Flow

The additional cash flow generated by a company as a result of engaging in a specific project or activity.