A companys bookkeeper incorrectly recorded the receipt of a $480 cheque, received in settlement of an accounts receivable, as a receipt of $840. The error was found when the bank account was reconciled at month end. How would the error be dealt with at the end of the month?

Select one:

a. $360 addition to the balance per bank in the bank reconciliation

b. $360 deduction from the balance per bank in the bank reconciliation

c. $360 addition to the balance per books

d. $360 deduction from the balance per books

On September 1, 20x4, a company borrowed $600,000 from the bank at an interest rate of 6%. The repayment schedule calls for annual payments of $100,000 plus interest commencing on August 31, 20x5. What is the balance in the note payable account as at December 31, 20x7?

Select one:

a. $100,000

b. $200,000

c. $300,000

d. $306,000