Kathy has a checkbook balance of $579.35. Her bank statement shows a balance of $597.50. Her outstanding checks total $115.65. There were $22.50 in fees and charges. The difference in the adjusted checkbook balance and adjusted bank statement balance is an unrecorded ATM withdrawal. What is that amount?

Question

Quizplus · Accepted Answer

Starting with the checkbook balance of $579.35 and adding outstanding checks of $115.65 yields a subtotal of $695.00. Then subtracting fees and charges of $22.50 results in an adjusted checkbook balance of $672.50.

To find the adjusted bank statement balance, start with the reported balance of $597.50 and add the outstanding checks of $115.65 while subtracting the fees and charges of $22.50. This results in an adjusted bank statement balance of $690.65.

The difference between the adjusted checkbook balance and adjusted bank statement balance is $672.50 - $690.65 = -$18.15. This negative amount indicates that the bank statement balance is higher than the checkbook balance, which means there is an unrecorded withdrawal from the account. Thus, the answer is (B) $75.00, which when subtracted from the adjusted bank statement balance of $690.65, gives an adjusted checkbook balance of $615.65, matching the calculated adjusted checkbook balance.

Kathy Has a Checkbook Balance of $579