Citizen Bank sent a bank statement to Bane Co. showing an ending balance of $1,480. On the bank statement there was a service charge of $20. The bookkeeper of Bane Co. noticed in the reconciliation process a deposit in transit of $200 along with checks outstanding of $300. Complete the reconciliation for Bane assuming a beginning balance of $1,400.
A)$1,830.00
B)$1,138.00
C)$1,380.00
D)$1,360.00
E)None of these

Question

Quizplus · Accepted Answer

Beginning Balance: $1,400 
Add deposit in transit: $200 
Total: $1,600

Subtract outstanding checks: $300 
Adjusted Total: $1,300

Subtract service charge: $20 
Ending Balance: $1,280

However, the bank statement shows an ending balance of $1,480. Therefore, there was an error in the bank statement.

To reconcile the bank statement: 
Beginning Balance: $1,400 
Add deposit in transit: $200 
Total: $1,600

Subtract outstanding checks: $300 
Adjusted Total: $1,300

Subtract service charge: $20 
Adjusted Total: $1,280

Add bank error: $200 
Reconciled Balance: $1,480

Citizen Bank Sent a Bank Statement to Bane Co