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The necessary adjustment to Hubbard Transport's accounting records as of August 31 includes a net: A. Increase to Cash of $5,241. B. Increase to Cash of $3,240. C. Increase to Cash of $3,681. D. Decrease to Cash of $35.

Chapter 7 7.1. Shown below is a partially completed bank reconciliation for Hubbard Transport at August 31, AS well as additional data necessary to answer the questions that follow. HUBBARD TRANSPORT Bank Reconciliation August 31, 20 Balance per bank statement .... $ 17,955 Add: (1) Deduct: Adjusted cash balance..... ................ Balance per depositor's records ... ..... $14,249 Add: Deduct: Adjusted cash balance... (4 1 Additional information Outstanding checks: no. 729, S1,253; no. 747, 8245; no. 752, 5781. Check no. 742 (for repairs) was written for $398 but erroneously recorded in Hubbard's records as 5839. Deposits in transit, $2,254. Note collected by the bank and credited to Hubbard's account, $4,800. e NSF check of C. Craig, one of Hubbard's customers, $1,525. f Bank service charge for August, $35. In Hubbard's completed bank reconciliation at August 31, what dollar amount should be deducted from the balance per bank statement indicated by 2 above)? a $2,254. b $2,279. $1,525. d $4,800. In Hubbard's completed bank reconciliation at August 31, what dollar amount should be added to the balance per depositor's records (indicated by 3 above)? a $4,800. b $2,254. $5,241. d $6,766. In Hubbard's completed bank reconciliation at August 31, what dollar amount should be deducted from the balance per depositor's records (indicated by 4 above)? # $2,254. b $2,001. $1,525 d $1,560. Hubbard Transport keeps $500 cash on hand in addition to this checking account and has no other bank accounts or cash equivalents. What amount should appear as Cash in Emerald's August 31 balance sheet? a $18,430. $14,249. b $17,955. d Some other amount. 3

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