The Miramar book cash balance is $274,600. The bank statement shows a $95.00 service charge, $420.00 interest earned, and a $1,850 NSF customer check. What adjusted book balance results?
Correct Answer
B) $273,075.00
Adjusted book balance subtracts bank charges and NSF checks, and adds interest earned.
Why This Is the Correct Answer
Adjusted book balance subtracts bank charges and NSF checks, and adds interest earned.
Why the Other Options Are Wrong
Option A: $272,655.00
$272,655.00 is below the supported result for adjusted book balance; it likely uses the wrong base, period, or account bucket.
Option C: $275,020.00
$275,020.00 is above the supported result for adjusted book balance; it likely adds an unsupported amount or compares the wrong financial base.
Option D: $274,925.00
$274,925.00 is above the supported result for adjusted book balance; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Balance and subtracts live in different drawers; Bookkeeper Updates 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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