On May 27 , you received your bank statement showing a balance of \( \$ 1,011.18 \). Your checkbook shows a balance of \( \$ 1,024.34 \). Outstanding checks are \( \$ 225.50 \) and \( \$ 388.10 \). The account earned \( \$ 88.51 \). Deposits in transit amount to \( \$ 705.27 \), and there is a service charge of \( \$ 10.00 \). Calculate the reconciled balance.

To find the reconciled balance, we will adjust the bank statement balance and the checkbook balance for any outstanding checks, deposits in transit, and service charges. 1. **Starting with the bank statement balance:** \[ \text{Bank statement balance} = \$ 1,011.18 \] - Add deposits in transit: \[ \$ 1,011.18 + \$ 705.27 = \$ 1,716.45 \] - Subtract outstanding checks: \[ \$ 1,716.45 - (\$ 225.50 + \$ 388.10) = \$ 1,716.45 - \$ 613.60 = \$ 1,102.85 \] 2. **Now, let's adjust the checkbook balance:** \[ \text{Checkbook balance} = \$ 1,024.34 \] - Subtract the service charge: \[ \$ 1,024.34 - \$ 10.00 = \$ 1,014.34 \] - Add earned interest: \[ \$ 1,014.34 + \$ 88.51 = \$ 1,102.85 \] Both calculations lead us to the reconciled balance: \[ \text{Reconciled balance} = \$ 1,102.85 \]