The Following Data Was Identified by Raines Corp - What Is the Net Amount of the Increase or Its

question 118

Multiple Choice

The following data was identified by Raines Corp.in preparation of its bank reconciliation on October 31,2017:
$$\begin{array} { l r } \text { Bank statement balance } & \$ 30,700 \\\text { Raines' book bal ance (before adjustments) } & ? \\\text { Outstanding checks } & 4,200 \\\text { NSF checks } & 400 \\\text { Service charge } & 300 \\\text { Deposits in transit } & 3,100 \\\text { Interest earned on checking account } & 100\end{array}$$
- What is the net amount of the increase or decrease in Raines' cash balance which must be recorded as a result of the adjustments identified by the bank reconciliation?

• A)$100 decrease
• B)$300 decrease
• C)$400 decrease
• D)$600 decrease

---

Definitions:

Debt Forgiveness

A situation in which a lender decides to cancel all or part of a borrower's outstanding debt, freeing them from their obligation to repay.

Credit Report

A detailed record of an individual's credit history from several sources, used by lenders to evaluate creditworthiness.

Credit Agencies

Organizations that collect, analyze, and distribute financial information about individuals and organizations to assist lenders in making credit decisions.

Work-Study Program

A college program that provides part-time jobs for students, allowing them to earn money to help pay education expenses.