Question

On Novenber 4, your bank statement shows a balance of $2,253.18. Your checkbook shows a balance of $2,324.34. If there are outstanding checks in the amounts of $105.50 and $158.10, deposits in transit amount to $605.27, account earnings of $68.51 and there is a service charge of $5.00. Determine the Adjusted Checkbook Balance and the Adjusted Statement Balance.

Answer 1

The final answer is "$2387.85 and $2594.85".

Explanation:

Given values:

The bank statement balance= $2,253.18

The checkbook balance = $2,324.34

outstanding check amounts= $105.50 and $158.10

transit amount= $605.27

account earnin(credits)= $68.51

service charge= $5.00

Adjusted Checkbook Balance =?

Adjusted Statement Balance=?

Adjusted the Checkbook Balance:

checkbook balance = $2,324.34

`\text{total checkbook balance = checkbook balance+ credits}\\`

`= \$ 2,324.34+ \$ 68.51\\\\= \$ 2392.85`

`\text{ Adjust check book balance= total checkbook balance - servicec charge}`

`= \$2392.85 - \$5.00\\\\= \$ 2387.85`

Adjusted the Statement Balance:

bank statement balance= $2,253.18

`\text{total Statement balance = bank Statement balance+ transit amount}\\`

`= \$ 2,253.18+ \$ 605.27\\\\= $ 2,858.45`

`\text{outstanding check amounts = $105.50+ $158.10}`

`= \$263.60`

`\text{ Adjust statement balance= total statement balance - outstanding check amount }`
`= \$ 2,858.45 - \$263.60\\\\= $ 2,594.85`