Question

A company's Cash account shows an ending balance of $4,200. Reconciling items included a bookkeeper error of $50 (a $550 check recorded as $600), two outstanding checks totaling $810, a service charge of $25, a deposit in transit of $280, and interest revenue of $33. What is the adjusted book balance?

Answer 1

Answer:

Adjusted book balance will be $4258

Explanation:

We have given ending book balance = $4200

Error in recording = $50

Interest revenue = $33

And service charge = $25

We have to find the adjusted book balance

Adjusted book balance is given by

Adjusted book balance = Ending book balance + error in recording + interest revenue - service charge = $4200+$50+$33-$25=$4258