Dinho Corporation Identified the Following Data When Preparing Its April

question 143

Multiple Choice

Dinho Corporation identified the following data when preparing its April bank reconciliation: $$\begin{array} { l r } \text { Bank statement balance } & \$ 45,000 \\\text { Dinho's book balance (before adjustments) } & ? \\\text { Outstanding checks } & 4,500 \\\text { NSF checks } & 1,400 \\\text { Service charge } & 300 \\\text { Deposits in transit } & 5,000 \\\text { Interest earned on checking account } & 25\end{array}$$
- In addition,Dinho incorrectly recorded a deposit in its books in the amount of $1,000.The correct amount was recorded by the bank as $1,200.
What is the net amount of the adjustments to Dinho's book balance as a result of the bank reconciliation?

• A)$1,675 increase
• B)$1,700 increase
• C)$1,675 decrease
• D)$1,475 decrease