On October 31, 2015, the bank statement shows that your company has $14,856.73 i
ID: 2426558 • Letter: O
Question
On October 31, 2015, the bank statement shows that your company has $14,856.73 in its checking account. You are aware of three outstanding checks for a total of $4,962.19. During October, 2015, the bank rejected two deposited checks from customers totaling $ 1,129.19 because of insufficient funds and charged you $50.00 in service fees. You had not yet received notice about the bad checks, but you were aware of and have recorded the $50.00 of service fees. Prior to adjustment on October 31, 2015, your Cash account would have a balance of:
A) $11,023.73.
B) $20,898.11.
C) $18,639.73.
D) $8,815.35.
Explanation / Answer
The correct option is A) $ 11,023.73
Bank reconciliation Statement as of October 31 2015
$ $ Balance as per bank statement 14,856.73 Less outstanding checks 4,962.19 Add cheques deposited but rejected by bank 1,129.19 Balance as per cash account 11,023.73