Problema Solution
Carol Stokke receives her April 6 bank statement showing a balance of $859.75; her checkbook balance is $954.25. The bank statement shows an ATM charge of $25.00, NSF fee of $27.00, earned interest of $ $2,75, and carol's $630.15 refund check, which was processed by the IRS and deposited to her account. Carol has two checks that have not cleared-No. 115 for $521.15 and No.116 for $205.50. There is also a deposit in transit for $1,402.05. prepare Carol's bank reconciliation
Answer provided by our tutors
we assume that the checks that have not cleared and the deposit in transit have not appeared in the bank's statement:
bank balance: 859.75 - 521.15 - 205.50 + 1402.05 = 1535.15
we assume that the ATM charge, the NSF fee, earned interest and IRS refund had not shown up in the checkbook:
checkbook balance: 954.25 - 25.00 - 27.00 + 2.75 + 630.15 = 1535.15
after reconciling both balances, they agree that Carol's account balance is $1,535.15