The adjusted bank balance is calculated as starting bank balance minus outstanding checks plus deposits in transit. The given values are 35,782; outstanding checks 19,573; deposits in transit 7,210. What is the adjusted balance?

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Multiple Choice

The adjusted bank balance is calculated as starting bank balance minus outstanding checks plus deposits in transit. The given values are 35,782; outstanding checks 19,573; deposits in transit 7,210. What is the adjusted balance?

Explanation:
Bank reconciliations adjust the starting bank balance for items that the bank hasn’t processed yet. Outstanding checks are payments you’ve issued that the bank hasn’t cleared, so they reduce the balance. Deposits in transit are funds you’ve received and recorded, but the bank hasn’t posted yet, so they increase the balance. Compute: 35,782 minus 19,573 equals 16,209; then add 7,210 to get 23,419. So, the adjusted bank balance is $23,419.

Bank reconciliations adjust the starting bank balance for items that the bank hasn’t processed yet. Outstanding checks are payments you’ve issued that the bank hasn’t cleared, so they reduce the balance. Deposits in transit are funds you’ve received and recorded, but the bank hasn’t posted yet, so they increase the balance.

Compute: 35,782 minus 19,573 equals 16,209; then add 7,210 to get 23,419.

So, the adjusted bank balance is $23,419.

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