On May 27, you received your bank statement showing a balance of $1,011.18. Your checkbook shows a balance of $1,024.34. Outstanding checks are $225.50 and $388.10. The account earned $88.51. Deposits in transit amount to $705.27, and there is a service charge of $10.00. Calculate the reconciled balance.
A) $1,384.85
B) $1,102.85
C) $859.58
D) $1,453.18

Question

Quizplus · Accepted Answer

To reconcile the bank balance, start with the bank statement balance, add any deposits in transit, subtract any outstanding checks, and adjust for any bank errors or charges. Starting with the bank statement balance of $1,011.18, add deposits in transit ($705.27), subtract outstanding checks ($225.50 + $388.10 = $613.60), add interest earned ($88.51), and subtract the service charge ($10.00). This gives a reconciled balance of $1,102.85.

On May 27, You Received Your Bank Statement Showing a Balance