Question

On May 2, you receive your bank statement showing a balance of $1,641.18. Your checkbook shows a balance of $1,427.15. Outstanding checks are $167.31, $245.66, and $302.56. The account earned $62.11. Deposit in transit amount to $555.61, and there is a service charge of $8.00. Calculate the reconciled balance. CHECKBOOK BALANCE STATEMENT BALANCE Add: Interest Earned & Other Credits Add: Deposits in Transit SUBTOTAL SUBTOTAL Deduct: Services Charges & Other Debits Deduct: Outstanding Checks ADJUSTED CHECKBOOK BALANCE ADJUSTED STATEMENT BALANCE

Answer 1

Answer and Explanation:

The computation is shown below:

Particulars Amount ($) Particulars Amount ($)

Checkbook balance 1,427.15 Statement balance 1,641.18

Add: Interest earned and Add: Deposits in transit 555.26

other credits 62.11

Less: Service charges Less: Outstanding checks (715.53)

and other debits (8.00)

Adjusted checkbook balance 1,481.26 Adjusted statement balance 1,481.26

The outstanding checks would be total of

= $167.31 + $245.66 + $302.56

= $715.53