Dance Town Academy The items listed below were identified while preparing a bank reconciliation for the company's checking account as of March Cash balance according to the general ledger Bank statement balance $18,500 Outstanding checks 2,700 Customer's bounced check 350 Bank service charges 100 Deposits in transit 1,000 Interest earned on the checking account 60 Refer to Dance Town Academy. How will the interest earned on the checking account be handled on a bank reconciliation? Oa. subtract from the bank statement balance Ob. add to the bank statement balance Oc. subtract from the balance from the company records Od. add to the balance from the company records

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Dance Town Academy
The items listed below were identified while preparing a bank reconciliation for the company's checking account as of March 31
Cash balance according to the general ledger
Bank statement balance
$18,500
Outstanding checks
2,700
Customer's bounced check
350
Bank service charges
100
Deposits in transit
1,000
Interest earned on the checking account
60
Refer to Dance Town Academy. How will the interest earned on the checking account be handled on a bank reconciliation?
Oa. subtract from the bank statement balance
Ob. add to the bank statement balance
Oc. subtract from the balance from the company records
Od. add to the balance from the company records
Transcribed Image Text:Dance Town Academy The items listed below were identified while preparing a bank reconciliation for the company's checking account as of March 31 Cash balance according to the general ledger Bank statement balance $18,500 Outstanding checks 2,700 Customer's bounced check 350 Bank service charges 100 Deposits in transit 1,000 Interest earned on the checking account 60 Refer to Dance Town Academy. How will the interest earned on the checking account be handled on a bank reconciliation? Oa. subtract from the bank statement balance Ob. add to the bank statement balance Oc. subtract from the balance from the company records Od. add to the balance from the company records
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