HUBBARD TRANSPORT

Bank Reconciliation

August 31, 20__

Balance per bank statement ..................................................................... $ 17,955

Add: (1) Deduct: (2)

Adjusted cash balance............................................................................... $

Balance per depositors records ................................................................ $14,249

Add: (3) Deduct: (4) -----

Adjusted cash balance............................................................................... $________

Additional information

a Outstanding checks: no. 729, $1,253; no. 747, $245; no. 752, $781.

b Check no. 742 (for repairs) was written for $398 but erroneously recorded in Hubbards records as $839.

c Deposits in transit, $2,254.

d Note collected by the bank and credited to Hubbards account, $4,800.

e NSF check of C. Craig, one of Hubbards customers, $1,525.

f Bank service charge for August, $35.

Question:

In Hubbards completed bank reconciliation at August 31, what dollar amount should be deducted from the balance per bank statement (indicated by 2 above)?

Select one:

a.

$2,279

b.

$ 4,800

c.

$1,525

D

$ 2,254