Question

Travis received a letter from his bank saying that his checking account balance fell below zero. His account transaction log is shown below. CHECK NO. DATE DESCRIPTION OF TRANSACTION PAYMENT DEPOSIT BALANCE --- 10/17 Beginning Balance --- --- $367.50 1125 10/18 CBC Audio (Headphones) $62.00 -62.00 $305.50 Line 1 1126 10/22 NY Sport (Basketball Shoes) $87.00 -87.00 $218.50 Line 2 Debit 10/25 Gary's Country Market $38.50 -38.50 $180.00 Line 3 1127 10/25 Iggy's Skate Shop (Skateboard) $188.00 -188.00 $8.00 Line 4 10/25 Cash Deposit (Birthday Money) $20.00 +20.00 $28.00 Line 5 Debit 10/30 McDonuts $5.95 -5.95 $22.05 Line 6 On which line did Travis make a mathematical error? Explain Travis's mistake and show the correct calculations.

Answer 1

Line 3 Balance $(8)

Line 4 Balance $12

Line 5 Balance $ 6.05

Explanation:

CHECK NO. DATE DESCRIPTION OF TRANSACTION PAYMENT DEPOSIT BALANCE --- 10/17

Beginning Balance --- --- $367.50 1125 10/18

CBC Audio (Headphones) $62.00 -62.00 $305.50

Line 1 1126 10/22 NY Sport (Basketball Shoes) $87.00 -87.00 $218.50

Line 2 Debit 10/25 Gary's Country Market $38.50 -38.50 $180.00

Line 3 1127 10/25 Iggy's Skate Shop (Skateboard) $188.00 -188.00 $-8.00

Line 4 10/25 Cash Deposit (Birthday Money) $20.00 +20.00 $12.00

Line 5 Debit 10/30 McDonuts $5.95 -5.95 $ 6.05

Travis made a mistake on line 3 where he had a cash of $ 180 but spent $ 188 and the ending balance shoul be negative 8 but he wrote only $ 8.

On the next line when he receives a deposit of $ 20 the negative $8 balance should be deducted from it but it is added as it is not negative.

Travis should have balance of $ 12 instead of $ 28 .

He then spents $ 5.95 which again deducted from $ 12 leaves only $ 6.05

But his wrong calculations depict balance of $ 22.05 which is incorrect.