Ask Question
9 March, 23:50

On October 31, 2015, the bank statement shows that your company has $12,956.73 in its checking account. You are aware of three outstanding checks for a total of $2,112.19. During October, 2015, the bank rejected two deposited checks from customers totaling $654.19 because of insufficient funds and charged you $12.00 in service fees. You had not yet received notice about the bad checks, but you were aware of and have recorded the $12.00 of service fees. Prior to adjustment on October 31, 2015, your Cash account would have a balance of:

A. $14,402.73.

B. $15,711.11.

C. $11,498.73.

D. $10,202.35.

+4
Answers (1)
  1. 10 March, 02:39
    0
    C. $11,498.73.

    Explanation:

    Solving this question, we will have to make use of this formula:

    The Adjusted Bank Balance = Unadjusted Balance as per Bank Statement as at Oct 31, 2015 - Checks Outstanding

    = $12,956.73 - $2,112.19 = $10,844.54

    Now,

    Before the adjustment on the 31st of October, 2015,

    The Cash account Balance = Adjusted Bank Balance + insufficient funds checks

    = $10,844.54 - $654.19 = $11,498.73

    Hence third option in the question is the correct answer.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “On October 31, 2015, the bank statement shows that your company has $12,956.73 in its checking account. You are aware of three outstanding ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers