I need the answer to this one The following information is a

I need the answer to this one.

The following information is available for Ellen\'s Fashions Company for the current month. Book balance end of month Outstanding checks Deposits in transit Service charges Interest revenue $7,000 $725 $4,000 $80 $45 What is the adjusted book balance on the bank reconciliation? O A. $7,690 O C. $6,875 O D. $10,150

Solution

Calculate adjusted book balance in bank reconciliation :

Adjusted book balance = Book balance end of month+interest revenue-service charges

                                 = 7000+45-80

Adjusted book balance = 6965

so answer is b) $6,965