The Ofelia Corporation\'s checkbook balance was $25,902 on October 31. According

Question

The Ofelia Corporation's checkbook balance was $25,902 on October 31. According to its October 31 bank statement, the company's bank balance was $29,870. The company determined its outstanding checks were $7,261 and its outstanding deposits were $3,276 on October 31. Its bank statement showed the bank charged the company a $25 service charge and paid the company $8 interest in October.

Determine the company's October 31 adjusted checkbook balance.

$29,870

$25,885

$29,853

$25,919

a.

$29,870

b.

$25,885

c.

$29,853

d.

$25,919

Explanation / Answer

Answer is b. $ 25,885

Explanation:

Balance as per Books 25902 Adjustment Less: Service charges not recorded -25 Add: Interest Allowed not recorded 8 Adjusted Balance as per Books 25885

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