Question

Malcolm has several receipts from recent transactions that he entered in his records. The receipts include an ATM receipt for an $80.00 deposit, a grocery store receipt for $25.50, and a paycheck deposit slip for $650.00. When he finishes entering his transactions, Malcolm realizes that his balance is incorrect. Assuming that Malcolm had no beginning balance, what should his correct balance be?

Answer 1

Malcolm's correct balance should be $ 704.50

Explanation:

1. Define incomes and expenditures

Incomes: ATM receipt for $80.00 deposit and a paycheck deposit slip for $650.00.

Expenditures: Grocery store receipt for $ 25.5.

2. Add incomes and expenditures respectively

Incomes: $80.00 + $ 650.00

Incomes: $ 730.00

Expenditures: $ 25.5

3. Determine Malcom balance subtracting expenditures from incomes

Balance= Incomes - Expenditures

Balance= $ 730.00 - $ 25.5

Balance= $ 704.50