MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The following information is needed to reconcile the cash balance for Discount Dry Cleaning Company. A deposit of $5600 is in transit. Outstanding checks total $1400. The book balance is $6000 at February 28, 2019. The bookkeeper recorded a $1600 check as $17,400 in payment of the current month's rent. The bank balance at February 28, 2019 was $17,130. A deposit of $300 was credited by the bank for $3000. A customer's check for $3100 was returned for nonsufficient funds. The bank service charge is $70. What was the adjusted book balance? A) $17,200 B) $18,630 C) $18,770 D) $18,700 2) The data of Graham Brothers Company for two years are given below. Cash and cash equivalents Total current liabilities 2018 $5300 24,000 2019 $12,000 31,000 Based on the above information, which of the following statements is TRUE? A) Cash ratio has increased from 0.387 in 2018 to 0.221 in 2019. B) Cash ratio has increased from 0.02 in 2018 to 0.03 in 2019. C) Cash ratio has increased from 0.05 in 2018 to 0.08 in 2019. D) Cash ratio has increased from 0.221 in 2018 to 0.387 in 2019. 3) 3) A company received a bank statement showing a balance of $76,000. Reconciling items included outstanding checks of $2000 and a deposit in transit of $9100. What is the company's adjusted bank balance? A) $68,900 B) $64.900 C) $66,900 D) $83,100 4) 4) In reconciling a bank statement, the bank balance is $2,100, and the checkbook balance is $2,001. Which of the following is the most probable reason for the bank balance being larger than the book balance? A) There are outstanding checks. B) A deposit in transit was made at the end of the month C) The bank has deducted certain amounts for bank service charges D) The company erroneously recorded a check for an amountless than the actual amount