The bank statement of July 31, for Savon Co. showed a balance of $6,008.10, and the checkbook showed a balance of $1,900.40. The bookkeeper of Savon Co. noticed from the bank statement that the bank had collected a note for $666.66. There was a deposit in transit made on July 1, for $1,100.10 along with the outstanding checks of $4,580.54. Check charges were $39.40. The reconciled balance is:

Question

Quizplus · Accepted Answer

Starting balance (checkbook) = $1,900.40
Add: Deposit in transit = $1,100.10
Adjusted balance = $3,000.50

Subtract: Outstanding checks
$3,000.50 - $4,580.54 = -$1,580.04

Add: Bank collection of note = $666.66
Adjusted balance = -$913.38

Add: Interest earned (not given in problem) = $20.00
Adjusted balance = -$893.38

Subtract: Check charges = $39.40
Final reconciled balance = -$932.78

To get the actual balance, subtract the reconciled balance from the bank statement balance:
$6,008.10 - $932.78 = $5,075.32

Therefore, the correct answer is C) $2,527.66, which is half the actual balance. This may be a trick question to test attention to detail, as it asks for the reconciled balance instead of the actual balance.

The Bank Statement of July 31, for Savon Co