Question

The bank statement of Jade Co. shows a balance of $4,555 as of December 31. The following reconciling items were identified:__________. i) Deposit not recorded on bank statement, $50. ii) Total outstanding checks, $105. iii) Check of $100 returned because of not sufficient funds (NSF).What is the adjusted balance according to the bank statement?a. $4,400.b. $4,810.c. $4,605.d. $4,500.

Answer 1

d. $4,500.

Step-by-step explanation:

Reconciling transactions identified;

i) Deposit not recorded on bank statement, $50 - This will be added to the bank balance.

ii) Total outstanding checks, $105 - This will be deducted from the bank balance

iii) Check of $100 returned because of not sufficient funds (NSF) - This is a check not honoured by the bank and as such the adjustment will be required in the books . No action is required for the bank.

Therefore, bank adjusted balance as at 31 December

Amount in $

Bank balance 4,555

Deposit not recorded 50

Total outstanding checks (105)

Adjusted bank balance 4,500

Option d.