As of 12/31 the cash balance in Ellery, Inc.'s books is $75,000. The bank statement, however, showed a balance of $100,000 as of the same date. The only reconciling items were deposits in transit of $15,000, interest earned of $225, a bank service charge of $115 and outstanding checks.

______________________________

In determining the Adjusted Bank Statement Balance, the following adjustment is made in regards to the service charge:

Question 13 options:

	$115 is added to the balance of Ellery, Inc.'s 12/31 cash balance on its books.
	$115 is subtracted from the balance of Ellery, Inc.'s 12/31 cash balance on its books.
	$115 is subtracted from the balance of Ellery, Inc.'s 12/31 cash balance on its bank statement.
	$115 is added to the balance of Ellery, Inc.'s 12/31 cash balance on its bank statement.
	No adjustment is required.

Question 14 (Mandatory) (3.5 points)

As of 12/31 the cash balance in Ellery, Inc.'s books is $75,000. The bank statement, however, showed a balance of $100,000 as of the same date. The only reconciling items were deposits in transit of $15,000, interest earned of $225, a bank service charge of $115 and outstanding checks.

______________________________

In determining the Adjusted Bank Statement Balance, the following adjustment is made in regards to the outstanding checks:

Question 14 options:

	The value of outstanding checks is added to the balance of Ellery, Inc.'s 12/31 cash balance on its books.
	The value of outstanding checks is subtracted from the balance of Ellery, Inc.'s 12/31 cash balance on its bank statement.
	No adjustment is required.
	The value of outstanding checks is subtracted from the balance of Ellery, Inc.'s 12/31 cash balance on its books.
	The value of outstanding checks is added to the balance of Ellery, Inc.'s 12/31 cash balance on its bank statement.

Question 15 (Mandatory) (3.5 points)

As of 12/31 the cash balance in Ellery, Inc.'s books is $75,000. The bank statement, however, showed a balance of $100,000 as of the same date. The only reconciling items were deposits in transit of $15,000, interest earned of $225, a bank service charge of $115 and outstanding checks.

______________________________

Ellery Inc.'s Adjusted Bank Statement Balance is the following:

Question 15 options:

	$45,110
	$154,890
	$60,110
	$75,110
	$115,000

Question 16 (Mandatory) (3.5 points)

As of 12/31 the cash balance in Ellery, Inc.'s books is $75,000. The bank statement, however, showed a balance of $100,000 as of the same date. The only reconciling items were deposits in transit of $15,000, interest earned of $225, a bank service charge of $115 and outstanding checks.

______________________________

Ellery Inc.'s Adjusted Book Balance is the following:

Question 16 options:

	$75,340
	$75,110
	$85,110
	$74,660
	$75,225