Dance Town Academy
the Items Listed Below Were Identified While

question 174

Multiple Choice

Dance Town Academy
The items listed below were identified while preparing a bank reconciliation for the company's chequing account as of March 31.
$\begin{array}{lr}\text { Cash balance according to the general ledger } &?\\\text { Bank statement balance } & \$ 18,500 \\\text { Outstanding cheques } & 2,700\\ \text { Customer's bounced cheque } & 350 \\\text { Bank service charges } & 100 \\\text { Deposits in transit } & 1,000 \\\text { Interest earned on the chequing account } & 60\end{array}$
-Refer to the figure Dance Town Academy.What is the amount of the company's adjusted cash balance?

• A) $1,700
• B) $15,800
• C) $16,800
• D) $20,200

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Definitions:

General Ledger

A comprehensive record of all financial transactions over the life of a company, used to compile financial statements.

Cash Receipts

The accumulation of funds, usually through cash or checks, garnered by a company from its operational activities.

Accounts Payable

The amount of money a company owes to its suppliers or creditors for goods or services purchased on credit.

Subsidiary Posting

The process of transferring entries from the journal to the individual ledger accounts, often for the purpose of detailed accounting and tracking.