Question

The May bank statement for Consulting Services shows a balance of $7,200, but the balance per books shows a cash balance of $9,100. Other information includes

Answer 1

1. A check for $170 to pay the electric bill was recorded on the books as $20; understated.
2. Included on the bank statement was a note collected by the bank for $450 plus interest earned of $30.
3. Checks outstanding totaled $290.
4. Bank service charges were $60.
5. Deposits in transit were $2,460.
Which item should be added to the company's book balance during the bank reconciliation?