Question

Last month, when Jerry received his bank statement, he found that the balance in the statement did not match the balance in the register. Examine Jerry's check register and bank statement and evaluate his problem.

Trans typ./ Check no. Date Description of Transaction Payment/ Debit (-) Deposit/ Credit (+) Balance
900 00
241 9/4 Miller's Food Market 67.25 67 25
Groceries 832 75
242 9/18 Frank's Auto Parts 36.80 36 80
Oil and Filter 795 95
243 9/28 Mike's Barber Shop 15.00 15 00
Haircut 780 95
Deposit 9/30 Paycheck 650.45 650 45
1,431 40
Checking Account Statement

Account Number: 1234-1212
Checks date check no. amount
9/5 241 $67.25
9/20 242 $36.80
9/30 243 $15.00
Other Activity date transaction amount
9/30 Deposit $650.45
9/30 Fees $15.00
Balances Opening Balance $900.00
Closing Balance $1,416.40
A.
His check to the barber shop was not cashed before the end of the month.
B.
He added up his transactions incorrectly.
C.
He mislabeled a payment as a deposit.
D.
He had bank fees that were not in his check register.

Answer 1

D he had bank fees that were not in his check register

Explanation:

$1431.40 - $15.00 (Fees) = $1416.40

Answer 2

Option d is the correct answer.

Explanation:

Balance on Jerry's check register:

Initial Balance - (Miller's food market + Frank's auto parts + Mike's Barber shop) + Deposit

900 - (67.25 + 36.80 + 15.00) + 650.45 = $1431.40

Jerry's Account Statement :

Opening balance - (all the debited check's amount) + Deposit - bank fees

900 - ( 67.25 + 36.80 + 15.00) + 650.45 - 15.00 = $1416.40

So the balance of Bank statement and the balance of Jerry's register is not matching because Jerry has not mentioned a bank fees on 30/9 of $15.00. Therefore difference of $15.00 is showing.

$1431.40 - $15.00 = $1416.40

He had bank fees of $15 on 9/30 that were not in his check register.