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 2.75, and Carol's IRS refund $630.15, which was processed and deposited to her account. Carol has two checks that have not cleared--N0. 115 for $521.15 and No. 116 for $205.50. There is also a deposite in transit for $1,402.05. Prepare Carol's bank reconciliation.
Answer provided by our tutors
Carol’s checkbook balance: $ 954.25
Add:
Interest: $ 2.75
IRS refund: $630.15
$ 954.25 + ($ 2.75 + $630.15 ) = $1,587.15
Deduct:
ATM card fee: $ 25.00
NSF fee: $27.00
$1,587.15 - ($25.00 + $27.00) = $1,535.15
Reconciled balance: $1,535.15.
Bank balance: $ 859.75
Add:
Deposit in transit: $1,402.05
$ 859.75 + $1,402.05 = $2,261.80
Deduct:
Outstanding checks:
No. 115: $521.15
No. 116: $205.50
$2,261.80 - ($521.15 + $205.50) = $1,535.15
Reconciled balance: $1,535.15.