QUESTION 32

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 $58,570 balance at 5/31/20 will appear in the above structure.

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