Question
On May 27 , you received your bank statement showing a balance of
checkbook shows a balance of
is a service charge of
checkbook shows a balance of
is a service charge of
Ask by Greene Potter. in the United States
Jan 21,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
The reconciled balance is $1,102.85.
Solution
To reconcile your bank statement with your checkbook, follow these steps:
1. Reconcile the Bank Statement Balance
Start with the Bank Statement Balance and adjust for any Deposits in Transit and Outstanding Checks.
- Bank Statement Balance: $1,011.18
- Add: Deposits in Transit: +$705.27
- Subtract: Outstanding Checks
- $225.50
- $388.10
Adjusted Bank Balance: $1,102.85
2. Reconcile the Checkbook Balance
Start with the Checkbook Balance and adjust for any Interest Earned and Service Charges.
- Checkbook Balance: $1,024.34
- Add: Interest Earned: +$88.51
- Subtract: Service Charge: -$10.00
Adjusted Checkbook Balance: $1,102.85
3. Reconciled Balance
Both the Adjusted Bank Balance and the Adjusted Checkbook Balance match at $1,102.85.
Therefore, the reconciled balance is $1,102.85.
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Simplify this solution Bonus Knowledge
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.
-
Starting with the bank statement balance:
- Add deposits in transit:
- Subtract outstanding checks:
-
Now, let’s adjust the checkbook balance:
- Subtract the service charge:
- Add earned interest:
Both calculations lead us to the reconciled balance:
