XYZ Company's Cash account shows a balance of $7,800. The following reconciling items were identified: NSF check recorded by bank but not in books: $240 ⚫ Bank service charge: $25 ⚫ Interest earned: $45 . . Error in recording check (recorded as $780, actual amount $720) Outstanding checks: $950 Deposit in transit: $425 What is the adjusted book balance? a. $7,550 b. $7,600 c. $7,640 d. $7,680

College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter6: Bank Accounts, Cash Funds, And Internal Controls
Section: Chapter Questions
Problem 5E
icon
Related questions
Question

Need help with this accounting questions

XYZ Company's Cash account shows a balance of $7,800. The
following reconciling items were identified:
NSF check recorded by bank but not in books: $240
⚫ Bank service charge: $25
⚫ Interest earned: $45
.
.
Error in recording check (recorded as $780, actual amount $720)
Outstanding checks: $950
Deposit in transit: $425
What is the adjusted book balance?
a. $7,550
b. $7,600
c. $7,640
d. $7,680
Transcribed Image Text:XYZ Company's Cash account shows a balance of $7,800. The following reconciling items were identified: NSF check recorded by bank but not in books: $240 ⚫ Bank service charge: $25 ⚫ Interest earned: $45 . . Error in recording check (recorded as $780, actual amount $720) Outstanding checks: $950 Deposit in transit: $425 What is the adjusted book balance? a. $7,550 b. $7,600 c. $7,640 d. $7,680
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Quickbooks Online Accounting
Quickbooks Online Accounting
Accounting
ISBN:
9780357391693
Author:
Owen
Publisher:
Cengage
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Century 21 Accounting Multicolumn Journal
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,