Question

On December 31, the checkbook balance of Ray Company was $5,420.95. The bank statement balance showed $5,102.88. Checks outstanding totaled $813.53. The statement did not show a deposit in transit of $1,102.95. Check charges were $15.88. The company earned interest income of $29.32 that was shown on the report. The bookkeeper forgot to record a check for $42.09. What is the reconciled balance?

1) $5,932.03
2) None of these
3) $5,392.03
4) $5,923.03
5) $5,392.30

Answer 1

The reconciled balance for Ray Company is $5,932.03, which is calculated by making adjustments for outstanding checks, deposits in transit, check charges, unrecorded checks, and interest income to the checkbook and bank statement balances.

Step-by-step explanation:

The reconciled balance for Ray Company is calculated by adjusting the checkbook balance and the bank statement balance with outstanding checks, deposits in transit, check charges, unrecorded checks, and interest income.

The reconciled balance is found by starting with the checkbook balance of $5,420.95, adding the deposit in transit of $1,102.95, adding interest income of $29.32, subtracting outstanding checks of $813.53, subtracting check charges of $15.88, and subtracting the unrecorded check of $42.09.

When we do the math, the reconciled balance comes out to be $5,932.03. Therefore, the correct answer is option 1) $5,932.03.