Answer:
Adjusted balance: 1,801 dollars
Explanation:
Bank statement balance: 1,921
outstanding checks (300)
bank mistake <u> 180 </u>
adjusted bank balance 1,801
Cash account balance: 1,900
service charge (25)
Interest earned 1
car insurance expense <u> (75)</u>
Adjusted Balance: 1,801
We adjust each party for mistake and unknow information.
The bank made a mistake and is unaware of the outstanding checks
Joe didn't know about the insurance amount, the service charge nor the interest thus, it need to record and adjust for this value.