Author Question: In reconciling a bank statement, the bank statement balance is 1,000 and the balance per books is ... (Read 120 times)

naturalchemist · **on:** Jul 5, 2018

In reconciling a bank statement, the bank statement balance is 1,000 and the balance per books is 1,205 . A bank service charge is 15; a deposit in transit totals 500, and outstanding checks total 300 . The adjusted book balance is
a. 1,490.
b. 1,205.
c. 1,190.
d. 1,505.

Question 2

Which statement below best describes how to account for the costs of purchasing inventory?

A) The costs are initially recorded as expenses and depreciated over the estimated useful life.
B) Inventory costs are initially reported as assets and then maintained in the asset accounts for the life of the business.
C) The costs are initially recorded as assets and become expenses when the inventory has an increase in market value.
D) The costs are initially recorded as assets and become expenses when the inventory is sold.