Acompany's cash account shows an ending balance of $4,400. reconciling items included a bookkeeper error of $100 (a $500 check recorded as $600), two outstanding checks totaling $810, a service charge of $25, a deposit in transit of $250, and interest revenue of $30. what is the adjusted book balance?

The adjusted book balance is $4,505

Explanation:

For computing the adjusted book balance, various adjustments are required which is shown below:

= Cash account ending balance + bookkeeper error - service charge + interest revenue

= $4,400 + $100 -$25 + $30

= $4,505

The outstanding checks and the deposit in transit are not considered in the computation part. Thus, these are ignored

Hence, the adjusted book balance is $4,505

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