If a check that was outstanding on last period's bank reconciliation was not among the cancelled checks returned by the bank this period, in preparing this period's reconciliation, the amount of this check should be:
a) added to the book balance of cash.
b) deducted from the book balance of cash.
c) added to the bank balance of cash.
d) deducted from the bank balance of cash.
e) ignored in preparing the period's bank reconciliation.

D) Deducted from the bank balance of cash.

Explanation:

When you are preparing a bank reconciliation you generally must add to your balance account deposits in transit and deduct outstanding checks.

Checks are considered cash payments, but sometimes the payee of the check decides to cash the check later due to whatever reason or simply because he wants to. But once the check is handed out, the drawer has to consider it as money paid, no matter when it is cashed.

the interest will be $59.71

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