The Following Information Is Available for Jade Company for the Month

question 52

Multiple Choice

The following information is available for Jade Company for the month ending June 30, 2014. • Balance as per the bank statement is $11,240.
• Balance as per books is $10,200.
• Check #506 for $1,200 and check #510 for $900 were not shown on the June 30, bank statement.
• A deposit in transit of $3,110 had not been received by the bank when the bank statement was generated.
• A bank debit memo indicated an NSF check for $85 written by Jane Smith to Jade Company on June 13.
• A bank credit memo indicated a note collected by the bank of $2,100 and interest revenue of $55 on June 20.
• The bank statement indicated service charges of $20.
What is the adjusted book balance?

• A)$12,740
• B)$12,250
• C)$8,150
• D)$8,200

---

Definitions:

Debit

A debit is an accounting entry that results in either an increase in assets or expenses or a decrease in liabilities or equity on a company's balance sheet.

Owner's Equity

The residual interest in the assets of the entity after deducting liabilities, representing the owner's claim on the business assets.

Expenses

Costs incurred in the process of earning revenue, including operational costs like rent, utilities, and payroll.

Withdrawals

Refers to the act of taking money out of a bank account or the removal of funds from a business by its owner for personal use.