Question

Finley Iggley’s check register balance shows $1,959.75 at the time he receives his bank statement. His bank statement shows a balance of $2,827.00. Finley finds that check #525 for $600.00 and check #527 for $307.25 are still outstanding. He remembers that he took cash from an ATM, but never wrote down the amount. What is the most likely amount of Finley’s cash withdrawal?

A) $40.00
B) $33.75
C) $35.00
D) $46.00

Answer 1

Bank statement shows a balance of $2,827.00. From that balance, subtract the sum of the two outstanding checks of ($600 + $307.25). Do that because those checks have already been written but have not yet been processed by the banks but will be because the money has been spent. $2,827.00 - ($600 + $307.25) = ? Post what you get, okay? After that, there is one additional step to get to the answer to the posted question..

Answer 2

A) $40 is the most likely amount of Finley’s cash withdrawal

Explanation:

Given :

Finley Iggley’s check register balance shows $1,959.75

His bank statement shows a balance of $2,827.00.

Finley finds that check #525 for $600.00 and check #527 for $307.25 are still outstanding

Solution :

Since there is two outstanding checks of amount $600 and $307.25

Total amount of both checks = 600+307.25= $907.25

Since balance according to bank statement is $2,827.00.

So, after the deduction of amount of both checks , the new balance will be :

$2,827.00-$907.25 = $1919.75

Now, He remembers that he took cash from an ATM, but never wrote down the amount.

Since his check register shows $1,959.75 and his balance according to bank statement after the deduction of both checks amount = $1919.75

so, the difference between both the balance will give the amount which was taken from the atm = $1,959.75- $1919.75= $40

Thus, $40 is the most likely amount of Finley’s cash withdrawal

Hence Option A is correct .