Answer:
After adjustment for the service charge the checkbook balance is $368.26
Step-by-step explanation:
To solve the question, we recognize that this is a word problem, hence
In order to ensure that the checkbook and the bank statements are balanced, the latest bank statement is used as a reference to subtract or add transactions present in the checkbook but yet to be included in the bank statement thus, the sum total arrived at should equate to the current checkbook balance
Hence in this case Orlando Bank statement shows a service charge of $5.90 and a balance of $414.25 which is the amount owed Orlando
However Orlando has two outstanding checks which must be subtracted from the current bank statement balance to balance with the checkbook
Therefore to subtract the two outstanding checks we have
$414.25 - ($26.54 + $21.78) = $365.93
This is the amount that should be left on Orlando's checkbook
Hence subtrcting the service charge from the checkbook balance we have
$374.16 - $5.9 = $368.26 which is more than the eventual bank balance will be when the two checks are cleared