Question

The bank statement for Mat Co. revealed a balance of $900 while the checkbook balance showed $1,420. Checks outstanding totaled $35. A check printing charge for $5 was on the bank statement. There was a $50 NSF shown on the bank statement. There was a $500 deposit in transit. What is the reconciled balance?

Answer 1

Answer:

$1,365

Step-by-step explanation:

Entries for the bank statement balance:

Initial balance = $900

Checks outstanding = -$35

Deposit in transit = $500

Final balance = $900 + $500 -$35 = $1,365

Entries for the checkbook balance:

Initial balance = $1,420

Check printing charge = -$5

NSF = -$50

Final balance = $1,420 - $50 -$5 = $1,365

The reconciled balance is $1,365