The accountant for Lola Corp. was preparing a bank reconciliation as of February 28, 2017. The following items were identified: Lola's book balance $35,900 Outstanding checks 12,050 Interest earned on checking accounts 75 Customer's NSF check returned by the bank 325 There was an error in recording a customer's check as the check was recorded by Lola as $110, but the correct amount of $101 was recorded by the bank. Lola's adjusted cash balance at February 28, 2017 is

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Answer:

See below

Explanation:

Computation of Lola's Corp adjusted cash book balance at February 28, 2017

Lola Corp's book balance

$35,900

Add:

Interest earned on checking account

$75

Less:.

Customer's NSF check returned by the the bank

$325

Add:

Error in recording customer's check

($110 - $101)

$9

Adjusted cash balance

$35,659

Therefore, Lola Corp's adjusted cash book balance as at February 28, 2017 is $35,659