The Dunedin bank statement balance is $268,400. Deposits in transit are $31,900 and outstanding checks are $42,800. What adjusted bank balance is calculated?
Correct Answer
D) $257,500
Adjusted bank balance adds deposits in transit and subtracts outstanding checks.
Why This Is the Correct Answer
Adjusted bank balance adds deposits in transit and subtracts outstanding checks.
Why the Other Options Are Wrong
Option A: $279,300
$279,300 is above the supported result for adjusted bank balance; it likely adds an unsupported amount or compares the wrong financial base.
Option B: $343,100
$343,100 is above the supported result for adjusted bank balance; it likely adds an unsupported amount or compares the wrong financial base.
Option C: $225,600
$225,600 is below the supported result for adjusted bank balance; it likely uses the wrong base, period, or account bucket.
Memory Technique
Bank and balance live in different drawers; Reconciles Dunedin 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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