Erin has a balance of $1,150.34 in her check register.On her statement,the balance of her account is $844.93.Not reported on the bank statement are deposits of $125.56,$50,and $212.34.There are outstanding checks in the amount of $15 and $78.25 and an ATM withdrawal of $40.After Erin reconciles her check register with her statement,what entry does she need to make in her register?

Question

Quizplus · Accepted Answer

Erin's adjusted bank statement balance should include the deposits not yet recorded ($125.56 + $50 + $212.34 = $387.90) and subtract the outstanding checks ($15 + $78.25 = $93.25) and ATM withdrawal ($40). So, $844.93 + $387.90 - $93.25 - $40 = $1,099.58. The difference between her check register ($1,150.34) and the adjusted bank statement balance ($1,099.58) is $50.76, which she needs to subtract from her register, hence -$50.76.

Erin Has a Balance of $1,150