The bank statement balance for a Florida contractor is $88,400. Deposits in transit are $12,600 and outstanding checks are $9,700. What adjusted bank balance should be used?
Correct Answer
B) $91,300
Adjusted bank balance is bank balance plus deposits in transit minus outstanding checks: $91,300.
Why This Is the Correct Answer
Adjusted bank balance is bank balance plus deposits in transit minus outstanding checks: $91,300.
Why the Other Options Are Wrong
Option A: $89,300
$89,300 is below the supported result for bank reconciliation; it likely uses the wrong base, period, or account bucket.
Option C: $94,200
$94,200 is above the supported result for bank reconciliation; it likely adds an unsupported amount or compares the wrong financial base.
Option D: $110,700
$110,700 is above the supported result for bank reconciliation; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Reconciling Gc'S money test: bucket before math for bank reconciliation.
Reference Hint
Open-book path: tab Builder's Guide to Accounting, 2001 to Section Two, Check Writing and Recording, Bank Reconciliation; use the job ledger figures in the stem and recompute the same accounting measure.
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