Question

At the end of May, More Co. had a $7,447.50 checkbook balance. The bank statement disclosed an ending balance of $8,694.50. The statement revealed the following items:

Bank service charge $ 42.00
A $321 check recorded as $213
Deposits in transit $1,260.00
Note collected by the bank $1,238.00
Outstanding checks $1,419.00

The reconciled balance was

a.$7,275.50.

b.$8,553.50.

c.$9,954.50.

d.$8,535.50.

Answer 1

$8535.50

Explanation:

BANK STATEMENT:

$8694.50 - $1419.00 + $1260.00 = $8535.50

CHECKBOOK REGISTRY:

First, figure out the mistake between the check recorded and the actual amount. $321 - $213 = $108.00 This will be a deduction in the registry.

Now, reconcile the registry.

$7447.50 - $ 42.00 - $108.00 + $1238.00 = $8535.50