Question

your bank statement shows a balance of $528.55; your checkbook shows a balance of $210.95. you determine three checks are outstanding in the amounts of $55.25, $38.75, and $129.60 and that a deposit of $97 was not recorded on your check register. the bank statement also shows a $3 service charge. what is your reconciled balance?

Answer 1

The reconciled balance is computed by adjusting the check register balance for outstanding checks, unrecorded deposits, and bank service charges, which yields a reconciled balance of $185.40.

Step-by-step explanation:

The reconciled balance of the checkbook after considering the outstanding checks, the unrecorded deposit, and bank service charges is $185.40.

To reconcile the balance, we need to adjust the checkbook balance for any outstanding checks and unrecorded deposits. We start with the checkbook balance of $210.95 and subtract the outstanding checks amounts: $55.25, $38.75, and $129.60. Next, we add the unrecorded deposit of $97. Finally, we must account for the bank service charge of $3 that appears on the bank statement but not in the checkbook.

Here's the calculation step by step:

• Checkbook balance: $210.95
• Subtract outstanding checks: $210.95 - $55.25 - $38.75 - $129.60 = -$12.65
• Add unrecorded deposit: -$12.65 + $97 = $84.35
• Subtract bank service charge: $84.35 - $3 = $81.35
• Add this amount to the bank statement balance: $528.55 + $81.35 = $609.90

Now we can see that the reconciled balance equals the bank statement balance plus or minus any discrepancies including the service charge, making $609.90 the reconciled balance.