The Following Data Was Identified by Raines Corp - What Is the Net Amount of the Increase or Its

Multiple Choice

The following data was identified by Raines Corp.in preparation of its bank reconciliation on October 31,2017:
$$\begin{array} { l r } \text { Bank statement balance } & \$ 30,700 \\\text { Raines' book bal ance (before adjustments) } & ? \\\text { Outstanding checks } & 4,200 \\\text { NSF checks } & 400 \\\text { Service charge } & 300 \\\text { Deposits in transit } & 3,100 \\\text { Interest earned on checking account } & 100\end{array}$$
- What is the net amount of the increase or decrease in Raines' cash balance which must be recorded as a result of the adjustments identified by the bank reconciliation?

A) $100 decrease
B) $300 decrease
C) $400 decrease
D) $600 decrease