Delco Construction
the Following Items Relate to the Company's March

question 29

Multiple Choice

Delco Construction
The following items relate to the company's March bank reconciliation:
$\begin{array}{llr} \text { Bank statement balance} &\$29,600\\ \text { Unadjusted cash balance according to company records } &?\\ \text { Deposit in transit } &2,200\\ \text { Outstanding cheques} &3,100\\ \text { Bank service charges } &200\\ \text { Interest earned on the bank account } &100\\ \text { Customer's NSF cheque returned by the bank } &300\\\end{array}$

-Refer to the figure Delco Construction.What is the net amount of the adjustments to the company's cash balance as a result of the bank reconciliation?

• A) $400 increase
• B) $400 decrease
• C) $900 increase
• D) $900 decrease

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Definitions:

Manufacturing Company

An entity engaged in the production of goods by combining raw materials and components in an industrial process.

Work in Process Inventory

Work in process inventory consists of partially finished goods that are still in the production process at a given point in time.

Overapplied Overhead

A situation where the overhead allocated to products or services exceeds the actual overhead costs incurred.

Cost Accounting System

A method of accounting for the collection, recording, classification, analysis, and allocation of direct costs, indirect costs, and overheads to cost units and cost centres for budgeting, controlling, and decision making.