Question
In preparing the June 30th bank reconciliation, the accountant identified the following items: Company's checkbook balance $23,000, Outstanding Checks $550, Interest earned on the checking
In preparing the June 30th bank reconciliation, the accountant identified the following items: Company's checkbook balance $23,000, Outstanding Checks $550, Interest earned on the checking account $100, Customer's NSF (non sufficient funds) check returned by the bank $1,000. In the process of preparing the reconciliation, the accountant discovered an error in recording a customer's check; the amount was incorrectly recorded on the books as a cash receipt of $600, while the bank correctly recorded the amount as $650. What is the company's adjusted cash balance on June 30th?
- A. $22,200
- B. $22,250
- C. $22,150
- D. $21,700
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