The Surfside bank statement shows $509,800. Deposits in transit are $76,400, outstanding checks are $83,500, and a bank error understated the account by $1,250. What adjusted bank balance should be used?
Correct Answer
C) $503,950
Adjusted bank balance starts with the bank statement and adjusts for deposits in transit, outstanding checks, and the bank error.
Why This Is the Correct Answer
Adjusted bank balance starts with the bank statement and adjusts for deposits in transit, outstanding checks, and the bank error.
Why the Other Options Are Wrong
Option A: $502,700
$502,700 is below the supported result for adjusted bank balance; it likely uses the wrong base, period, or account bucket.
Option B: $426,300
$426,300 is below the supported result for adjusted bank balance; it likely uses the wrong base, period, or account bucket.
Option D: $669,700
$669,700 is above the supported result for adjusted bank balance; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Bookkeeper Prepares money test: bucket before math for adjusted.
Reference Hint
Open-book path: tab Builder's Guide to Accounting, 2001 to Section One, Bank Accounts and Reconciliation; use the job ledger figures in the stem and recompute the same accounting measure.
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