The book cash balance is $63,250. The bank recorded a $95 service charge and a $3,600 note collection not yet recorded in the books. What adjusted book balance results?
Correct Answer
C) $66,755
The book side is increased for the note collection and decreased for the service charge.
Why This Is the Correct Answer
The book side is increased for the note collection and decreased for the service charge.
Why the Other Options Are Wrong
Option A: $59,555
$59,555 is below the supported result for adjusted book balance; it likely uses the wrong base, period, or account bucket.
Option B: $63,155
$63,155 is below the supported result for adjusted book balance; it likely uses the wrong base, period, or account bucket.
Option D: $66,945
$66,945 is above the supported result for adjusted book balance; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Side and increased live in different drawers; Accountant Updating tells which opens.
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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