Dance Town Academy
the Items Listed Below Were Identified While

Multiple Choice

Dance Town Academy
The items listed below were identified while preparing a bank reconciliation for the company's chequing account as of March 31.
$\begin{array}{lr}\text { Cash balance according to the general ledger } &?\\\text { Bank statement balance } & \$ 18,500 \\\text { Outstanding cheques } & 2,700\\ \text { Customer's bounced cheque } & 350 \\\text { Bank service charges } & 100 \\\text { Deposits in transit } & 1,000 \\\text { Interest earned on the chequing account } & 60\end{array}$
-Refer to the figure Dance Town Academy.How will the deposits in transit be handled on a bank reconciliation?

A) They will be added to the balance from the company records.
B) They will be subtracted from the balance from the company records.
C) They will be added to the bank statement balance.
D) They will be subtracted from the bank statement balance.