56. on february 28 of the current year, yancey company received a bank statement dated february 27. the…

56. on february 28 of the current year, yancey company received a bank statement dated february 27. the following information is obtained from the bank statement and from the records of the business. bank statement balance: $3,500.00 outstanding checks: no. 234 - $100.00 no. 235 - $90.00 bank service charge: $3.50 outstanding deposits: february 27, $500.00 february 28, $200.00 checkbook balance on check stub no. 237: $3,873.00 does the bank statement reconcile? a. no, the adjusted checkbook balance is $140.50 too low. b. no, the adjusted checkbook balance is $913.50 too high. c. yes, the adjusted checkbook balance and the adjusted bank balance agree. d. yes, the adjusted checkbook balance is more than the adjusted bank balance.

56. on february 28 of the current year, yancey company received a bank statement dated february 27. the following information is obtained from the bank statement and from the records of the business. bank statement balance: $3,500.00 outstanding checks: no. 234 - $100.00 no. 235 - $90.00 bank service charge: $3.50 outstanding deposits: february 27, $500.00 february 28, $200.00 checkbook balance on check stub no. 237: $3,873.00 does the bank statement reconcile? a. no, the adjusted checkbook balance is $140.50 too low. b. no, the adjusted checkbook balance is $913.50 too high. c. yes, the adjusted checkbook balance and the adjusted bank balance agree. d. yes, the adjusted checkbook balance is more than the adjusted bank balance.

Answer

Explanation:

Step1: Calculate adjusted bank balance

Subtract outstanding checks and add outstanding deposits to bank - statement balance. [3500-(100 + 90)+(500+200)=3500 - 190+700=4010]

Step2: Calculate adjusted check - book balance

Subtract bank service charge from check - book balance. [3873-3.50 = 3869.50]

Step3: Compare adjusted balances

The adjusted bank balance is (4010) and the adjusted check - book balance is (3869.50). The difference is (4010 - 3869.50=140.50), and the adjusted check - book balance is too low.

Answer:

A. No, the adjusted checkbook balance is $140.50 too low.