Question

Beacon​ Roofing's bank statement shows a bank balance of​ $43,267. The statement shows a bank service charge of​ $80 and a note collection of​ $790 on Beacon​ Roofing's behalf. Beacon​ Roofing's book balance should be adjusted by a total​ of:

Answer 1

Answer:

The Beacon​ Roofing's book balance should be adjusted by a total​ of $43,977

Explanation:

For computing the right amount of book balance, the following adjustments are required which is shown below:

1. Bank Balance = $43,267

2. Less - Bank service charge = - $80

3. Add: Notes collection = $790

So, the adjusted book balance equals to

= Bank balance - Bank service charge + notes collection

= $43,267 - $80 + $790

= $43,977

The notes collection is an income so it is added whereas the bank service charge is an expense so it would be deducted.

Hence, the Beacon​ Roofing's book balance should be adjusted by a total​ of $43,977