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In the Process of Reconciling Its Bank Statement for April

Question 199

Multiple Choice

In the process of reconciling its bank statement for April, Donahue Enterprises' accountant compiles the following information:  Cash balance per company books on April 30 $6,275 Deposits in transit at month-end $1,300 Outstanding checks at month-end $620 Bank charge for printing new checks $45 Note receivable and interest collected by bank on Donahue’s behalf $770 A check paid to Donahue during the month by a eustomer is returned by the $480 bank as NSF \begin{array} { | l | r | } \hline \text { Cash balance per company books on April 30 } & \$ 6,275 \\\hline \text { Deposits in transit at month-end } & \$ 1,300 \\\hline \text { Outstanding checks at month-end } & \$ 620 \\\hline \text { Bank charge for printing new checks } & \$ 45 \\\hline \text { Note receivable and interest collected by bank on Donahue's behalf } & \$ 770 \\\hline \text { A check paid to Donahue during the month by a eustomer is returned by the } & \$ 480 \\\text { bank as NSF } & \\\hline\end{array} The adjusted cash balance per the books on April 30 is:


A) $6,900
B) $5,840
C) $4,600
D) $6,520
E) $8,160

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