Question

The bank statement of Ali Co. Indicated a current balance of $32,900. 10. The current checkbook balance

indicated a balance of $34,509. 11. In the reconciliation process a deposit in transit for $6,821. 11 was !


discovered. Check number 600 for $3,988. 33 was outstanding. The statement also revealed an NSF of $110. 11


along with interest earned by Ali of $1,333. 88. The reconciled balance is:

Answer 1

To calculate the reconciled balance, we need to consider the adjustments in the bank statement.

Starting with the current checkbook balance of $34,509, we need to make the following adjustments:

1. Deduct the outstanding check of $3,988.33: $34,509 - $3,988.33 = $30,520.67

2. Add the deposit in transit of $6,821.11: $30,520.67 + $6,821.11 = $37,341.78

3. Deduct the Non-Sufficient Funds (NSF) charge of $110.11: $37,341.78 - $110.11 = $37,231.67

4. Add the interest earned of $1,333.88: $37,231.67 + $1,333.88 = $38,565.55

Therefore, the reconciled balance is $38,565.55.