Brooke received her bank statement on March 7, showing a balance of $2,668.02. The balance shown in her checkbook was $2,256.20. Deposits in transit amounted to $646.53 and there was a service charge of $7.00. Outstanding checks were $276.69, $380.00, $35.00, and $282.68, and the interest earned was $90.98. What is the reconciled balance?
To reconcile the bank statement and find the correct balance, we need to consider the following items:
1. Starting balance in the checkbook: $2,256.20
2. Deposits in transit: $646.53 (These are deposits made by Brooke but have not yet been recorded by the bank)
3. Outstanding checks: $276.69, $380.00, $35.00, and $282.68 (These are checks issued by Brooke, but have not yet been cleared by the bank)
4. Service charge: $7.00 (A fee charged by the bank for their services)
5. Interest earned: $90.98 (This is the interest earned by Brooke on her account)
Let's calculate the reconciled balance step by step:
Starting balance in the checkbook: $2,256.20
Add deposits in transit: $2,256.20 + $646.53 = $2,902.73
Subtract outstanding checks: $2,902.73 - ($276.69 + $380.00 + $35.00 + $282.68) = $1,928.36
Add interest earned: $1,928.36 + $90.98 = $2,019.34
Subtract service charge: $2,019.34 - $7.00 = $2,012.34
Therefore, the reconciled balance is $2,012.34.