Dreammaker Kitchens
the Following Information Relates to the Company's November

question 201

Multiple Choice

Dreammaker Kitchens
The following information relates to the company's November bank reconciliation:
$\begin{array}{llr} \text { Bank statement balance} &\$10,700\\ \text { Unadjusted cash balance according to company records } &?\\ \text { Deposit in transit } &2,100\\ \text { Outstanding cheques} &1,200\\ \text { Bank service charges } &300\\ \text { Interest earned on the bank account } &100\\ \text { Customer's NSF cheque returned by the bank } &400\\\end{array}$

-Refer to the figure Dreammaker Kitchens.What was the company's unadjusted cash balance on November 30 before the bank reconciliation process was undertaken?

• A) $10,700
• B) $11,300
• C) $11,600
• D) $12,200

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Definitions:

Simple Rate

An interest calculation method where interest is not compounded on earned interest, instead applied only on the principal amount.

Principal Plus Interest

It is the total amount due that includes the original amount borrowed (principal) in addition to the charged interest on that principal.

Cheque Accounting

The handling and record-keeping of cheques within the accounting practices of an individual or organization.

Interest Earning

Relates to the income generated from investing or depositing funds in interest-bearing financial instruments.