On October 31, 2015, your company's records say that the company has $18,588.13 in its checking account. A review of the bank statement shows you have three outstanding checks totaling $7,403.37, and the bank has paid you interest of $20.24 and charged you $16.00 in service charges. The bank statement dated October 31, 2015 would report a balance of:
$11,180.52
$25,987.26
$11,189.00
$25,995.74
To determine the bank statement balance on October 31, 2015, we will start with the company's recorded balance of $18,588.13 and consider the adjustments based on the information provided.
First, subtract the total amount of outstanding checks ($7,403.37) from the recorded balance:
$18,588.13 - $7,403.37 = $11,184.76
Next, account for the interest earned ($20.24) by adding it to the adjusted balance:
$11,184.76 + $20.24 = $11,205.00
Finally, take into account the service charges ($16.00) by subtracting it from the adjusted balance:
$11,205.00 - $16.00 = $11,189.00
Therefore, the bank statement dated October 31, 2015 would report a balance of $11,189.00.