Question

If a firm's bank reconciliation statement shows a bank statement balance of $13,325, total deposits in transit of $1,450, and total outstanding checks of $1,030, the adjusted bank balance is Multiple Choice

a. $10,845
b. $12,905
c. $13,745
d. $15,805

Answer 1

The adjusted bank balance is obtained by adding deposits in transit to, and subtracting outstanding checks from, the bank statement balance. The final adjusted bank balance in this case is $13,745.

Step-by-step explanation:

When calculating the adjusted bank balance on a bank reconciliation statement, you need to make certain adjustments to the balance shown on the bank statement. The adjustments include adding total deposits in transit to the statement balance and subtracting total outstanding checks. Starting with the bank statement balance of $13,325, add the deposits in transit of $1,450, which gives a subtotal of $14,775. Then, subtract the outstanding checks of $1,030. The resulting adjusted bank balance would be $13,745.