Question

Hunter's, Inc. reported a balance of $1,410 in its cash account at the end of the...

Hunter's, Inc. reported a balance of $1,410 in its cash account at the end of the month. There were $1,200 of deposits in transit and $1,150 of checks outstanding. The bank statement showed a balance of $1,510, service charges of $70, and the collection of a note plus interest. The note had a face value of $170. How much interest did the bank collect for the company?

$30

$390

$290

$50

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Answer #1
Correct Option D i.e $50
i) Hunter's Inc.
Bank Reconciliation Statement
Cash Balance as per bank statement 1510
Add: Deposit in Transit 1200
Less: Outstanding checks -1150
Adjusted Cash Balance 1560
Cash balance as per books 1410
Add: Note Collected 170
          Interest Collected 50 (Balancing Figure
Less: Bank Service charges -70
Adjusted Cash Balance 1560
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