The Following Information Is Needed to Reconcile the Cash Balance

question 51

Multiple Choice

The following information is needed to reconcile the cash balance for Johnson Catering Services. • A deposit of $5,800 is in transit.
• Outstanding checks total $1,100.
• The book balance is $6,000 at February 28,2017.
• The bookkeeper recorded a $1,700 check as $17,300 in payment of the current month's rent.
• The bank balance at February 28,2017 was $17,230.
• A deposit of $400 was credited by the bank for $4,000.
• A customer's check for $3,200 was returned for nonsufficient funds.
• The bank service charge is $70.
What was the adjusted book balance?

• A)$18,400
• B)$18,330
• C)$18,470
• D)$17,300

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Definitions:

Assets

Resources owned by a business that are expected to provide future economic benefits.

Owner's Equity

Owner's equity represents the residual interest in the assets of an entity after deducting liabilities, essentially the net worth of a company.

Withdrawal

The act of taking money out of an account, or the removal of funds from a partnership by a partner for personal use.

Revenues

The full extent of revenue garnered from the commercial activities that are at the core of a company’s operational agenda, particularly through goods or services.