Use the following information to answer the next three questions:

Balance per bank statement USD 1,951.20

Balance per ledger 1,869.60

Deposits in transit 271.20

Outstanding checks 427.80

NSF check 61.20

Service charges 13.80

The adjusted cash balance is:

a. USD 1,794.60.

b. USD 1,719.60.

c. USD 1,638.00.

d. USD 1,713.00.

e. USD 1,876.20.

In a bank reconciliation, deposits in transit should be:

a. Deducted from the balance per books.

b. Deducted from the balance per bank statement.

c. Added to the balance per ledger.

d. Added to the balance per bank statement.

e. Disregarded in the bank reconciliation.

After the bank reconciliation is prepared, the entry to record bank service charges would have a credit to:

a. Bank Service Charge Expense.

b. Cash.

c. Petty Cash.

d. Cash Short and Over.

e. None of the above.