Question

1. What is the lowest balance during this period?

2. Lily just received her bank statement below.
a. What does the bank think her ending balance is?
b. How much more does the bank think Lily has?
c. What transactions are missing?
3. What is the danger of not balancing your bank account?

Lily’s Bank Statement

Deposits:
2/25 $35
2/26 $20
3/1 $256.32

checks:
2/24 ck #301 $25
2/26 #302 $150

debit card:
2/24 american eagle $75.48
2/25 Chick Fa La $4.67
2/27 McDonalds $3.56
2/28 Chevron $34.76

withdrawal:
2/27 $40

Beginning Balance $423.34
Deposits $311.32
Total Debits $333.47
Ending Balance $401.19

Answer 1

The lowest balance during the given period is $401.19. The bank thinks Lily's ending balance is $401.19 and that she has $0 more. A missing transaction is a deposit of $35 on 2/27. Not balancing your bank account can lead to overspending, overdraft fees, and missing errors or fraud.

Step-by-step explanation:

To determine the lowest balance during the given period, we need to look at the Ending Balance on the bank statement. In this case, Lily's bank statement shows an Ending Balance of $401.19. Therefore, the lowest balance during this period is $401.19.

a. The bank thinks Lily's ending balance is $401.19, as indicated on the bank statement.

b. To calculate how much more the bank thinks Lily has, we subtract the Ending Balance from the actual balance. The actual balance is the sum of the deposits minus the total debits: $423.34 + $311.32 - $333.47 = $401.19. So, the bank thinks Lily has $0 more.

c. Based on the bank statement, it appears that a deposit of $35 on 2/27 is missing from the transactions.

The danger of not balancing your bank account is that you may overspend or incur overdraft fees without being aware of it. By not reconciling your account regularly, you may also miss errors or fraudulent activity on your account.