A Company's Cash Ledger Shows an Ending Balance of $4,000

question 160

Multiple Choice

A company's cash ledger shows an ending balance of $4,000. Reconciling items included a bookkeeper error of $100 (a $500 check recorded as $600) , two outstanding checks totaling $820, a service charge of $25, a deposit in transit of $280, and interest revenue of $31. What is the adjusted book balance?

• A)$3,894
• B)$3,460
• C)$4,106
• D)$4,540

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Definitions:

Capital Balances

The amounts reflected in a company's accounts representing the capital invested by its owners.

Goodwill

The value attributed to a company's brand name, customer base, good customer relations, good employee relations, and any patents or proprietary technology during acquisitions.

Personal Use

Utilization of property, goods, or services for individual rather than business or commercial purposes.

Partnership

A business arrangement that is legally recognized, involving two or more partners sharing both management responsibilities and profits.