QUESTION 31

1. Clark Corp. prepares monthly bank reconciliations of its checking account balance. The bank statement for May, 2020, indicated the following:

   The bank statement for May, 2020, indicated the following:	Amounts
   Balance, May 31, 2020	$65,000
   Service charge for May	60
   Interest earned during May	100
   NSF check from Nark Corp. (deposited by Clark)	2,000
   Note ($4,000) and interest ($180) collected for Clark from a customer of Clark's	4,180

   An analysis of canceled checks and deposits and the records of Clark revealed the following items:	Amounts
   Checking account balance per Clark's books	$58,570
   Outstanding checks as of May 31	6,630
   Deposit in transit at May 31	2,780
   Error in recording check #205 issued by Clark	360
   The correct amount of check #205 is $590, but it was recorded as a cash disbursement of $950. The check appeared on the bank statement correctly.

   The bank reconciliation structure is shown below: Balance per bank statement, May 31 $ Add: Deduct: ____________ Adjusted balance, May 31 $

   ========== Balance per books, May 31 $ Add:

   Deduct: ____________ Adjusted balance, May 31 $ ==========

   Indicate where the $4,180 interest and note collected for Clark during May will appear in the above structure.

   		a. Add to balance per bank statement
   		b. Add to balance per books
   		c. Deduct from balance per bank statement
   		d. Deduct from balance per books