Based on the following information, what amount would be SUBTRACTED from the BANK BALANCE side of a checking account reconciliation? Service charge $12, Outstanding checks $145, Interest $3.50, Deposit in transit $80
Amount = -12-145+3.50+80 = -$73.50
To determine the amount that would be subtracted from the bank balance side of a checking account reconciliation, we need to identify the items that would decrease the bank balance. In this scenario, the items that would be subtracted from the bank balance side are the service charge and the outstanding checks.
1. Service charge: The service charge of $12 would be subtracted from the bank balance side because it represents a fee charged by the bank for maintaining the account.
2. Outstanding checks: Outstanding checks are checks that have been issued by the account holder but have not yet been cleared by the bank. The outstanding checks amount of $145 would also be subtracted from the bank balance side since these funds have not been deducted from the account yet.
So, the total amount that would be subtracted from the bank balance side is $12 (service charge) + $145 (outstanding checks) = $157.
Note that the interest and the deposit in transit would not be subtracted from the bank balance since they represent funds that would increase the bank balance, not decrease it.