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The May bank statement for Accounting Services shows a balance of $6,300, but the balance per books shows a cash balance of $7,980. Other information includes the following: -A check for $200 to pay the electric bill was recorded on the books as $20. -Included on the bank statement was a note collected by the bank for $400 plus interest of $30. -Checks outstanding totaled $260. -Bank service charges were $50. -Deposits in transit were $2,140. The adjusted cash balance at the end of August should be A. $7,980. B. $9,810. C. $7,620. D. $8,180.

The May bank statement for Accounting Services shows a balance of $6,300, but the balance per books shows a cash balance of $7,980. Other information includes the following: -A check for $200 to pay the electric bill was recorded on the books as $20. -Included on the bank statement was a note collected by the bank for $400 plus interest of $30. -Checks outstanding totaled $260. -Bank service charges were $50. -Deposits in transit were $2,140. The adjusted cash balance at the end of August should be A. $7,980. B. $9,810. C. $7,620. D. $8,180.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The May bank statement for Accounting Services shows a balance of $6,300, but the balance per books shows a cash balance of $7,980. Other information includes the following: -A check for $200 to pay the electric bill was recorded on the books as $20. -Included on the bank statement was a note collected by the bank for $400 plus interest of $30. -Checks outstanding totaled $260. -Bank service charges were $50. -Deposits in transit were $2,140. The adjusted cash balance at the end of August should be A. $7,980. B. $9,810. C. $7,620. D. $8,180.
Transcribed Image Text:The May bank statement for Accounting Services shows a balance of $6,300, but the balance per books shows a cash balance of $7,980. Other information includes the following: -A check for $200 to pay the electric bill was recorded on the books as $20. -Included on the bank statement was a note collected by the bank for $400 plus interest of $30. -Checks outstanding totaled $260. -Bank service charges were $50. -Deposits in transit were $2,140. The adjusted cash balance at the end of August should be A. $7,980. B. $9,810. C. $7,620. D. $8,180.
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