sample multiple choice questions about the bank reconciliation\n1. on december 31, a company’s cash ledger…

sample multiple choice questions about the bank reconciliation\n1. on december 31, a company’s cash ledger shows $80970. the bank statement shows $81,849. among the reconciling items are:\noutstanding checks $6123\ndeposit in transit $4895\nbank service charge $25\nthe bank paid the company’s utility bill for $324\nwhat is the adjusted cash balance per books on december 31?\na) $80,295\nb) $80,621\nc) $82,646\nd) $83,400

sample multiple choice questions about the bank reconciliation\n1. on december 31, a company’s cash ledger shows $80970. the bank statement shows $81,849. among the reconciling items are:\noutstanding checks $6123\ndeposit in transit $4895\nbank service charge $25\nthe bank paid the company’s utility bill for $324\nwhat is the adjusted cash balance per books on december 31?\na) $80,295\nb) $80,621\nc) $82,646\nd) $83,400

Answer

Explanation:

Step1: Identify adjustments to cash - ledger balance

We start with the cash - ledger balance and make adjustments for items the company has not recorded yet.

Step2: Deduct bank - paid utility bill

The bank paid the utility bill, which the company has not recorded. So we subtract it from the cash - ledger balance. $80970-324$.

Step3: Deduct bank service charge

The bank service charge also needs to be deducted as it's not yet recorded in the company's books. $(80970 - 324)-25=80970-(324 + 25)=80970 - 349=80621$.

Answer:

B. $80,621$