Question

On Novenber 4, your bank statement shows a balance of $2,253.18. Your checkbook shows a balance of $2,324.34. If there are outstanding checks in the amounts of $105.50 and $158.10, deposits in transit amount to $605.27, account earnings of $68.51 and there is a service charge of $5.00. Determine the Adjusted Checkbook Balance and the Adjusted Statement Balance.

Answer 1

Answer:

The final answer is "$2387.85 and $2594.85".

Step-by-step explanation:

Given values:

The bank statement balance= $2,253.18

The checkbook balance = $2,324.34

outstanding check amounts= $105.50 and $158.10

transit amount= $605.27

account earnin(credits)= $68.51

service charge= $5.00

Adjusted Checkbook Balance =?

Adjusted  Statement Balance=?

Adjusted the Checkbook Balance:

checkbook balance = $2,324.34

$\text{total checkbook balance = checkbook balance+ credits}$

                                      $= \ 2,324.34+ \ 68.51\\\\= \ 2392.85$

$\text{ Adjust check book balance= total checkbook balance - servicec charge}$

                                         $= \ 2392.85 - \ 5.00\\\\= \ 2387.85$

Adjusted the Statement Balance:

bank statement balance= $2,253.18

$\text{total Statement balance = bank Statement balance+ transit amount}$

                                      $= \ 2,253.18+ \ 605.27\\\\= 2,858.45$

$\text{outstanding check amounts = 105.50+ 158.10}$

                                           $= \ 263.60$

$\text{ Adjust statement balance= total statement balance - outstanding check amount }$                                        $= \ 2,858.45 - \ 263.60\\\\= 2,594.85$