The Cash account in the ledger of Novake, Inc. showed a balance of $$9,300$ at June $30.$ The bank statement, however, showed a balance of $$11,700$ at the same date. The only reconciling items consisted of a $$2,100$ deposit in transit, a bank service charge of $$20,$ and a large number of outstanding checks.

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SAMPLE TEST $-$ CHAPTERS $1-5$&$7$

$18.$ Refer to the above data. What is the "adjusted cash balance" at June $30?$

A$)$ $$11,720.$

B$)$ $$9,280.$

C$)$ $$13,800.$

D$)$ Some other amount.

$19.$ Refer to the above data. What is the total amount of the outstanding checks at June $30?$

A$)$ $$4,540.$

B$)$ $$4,480.$

C$)$ $$4,520.$

D$)$ Some other amount.

$20.$ Refer to the above data. Upon completion of the bank reconciliation, a journal entry will be required to update the depositor's accounting records. This entry will include:

A$)$ a credit to Cash for $$2,100.$

B$)$ a debit to Cash for $$2,100.$

C$)$ a debit to Cash for $$20.$

D$)$ a debit to Bank Service Charge Expense for $$20.$