Anika's checking account had a balance of $3,100.55 on July 1. After looking at her bank statement, she noticed an NSF for $60.50, a service charge of $12.55, and a note collected for $600. There was one deposit in transit for $400 and no checks outstanding. What's the reconciled checkbook balance?
A. $3,627.50
B. $3,527
C. $5,327.50
D. $3,267.50
My answer is A.
To determine the reconciled checkbook balance, we need to add or subtract the various transactions from the initial balance.
1. Start with the initial balance of Anika's checking account on July 1: $3,100.55
2. Add the deposit in transit of $400 to the balance: $3,100.55 + $400 = $3,500.55
3. Subtract the NSF (non-sufficient funds) charge of $60.50: $3,500.55 - $60.50 = $3,440.05
4. Subtract the service charge of $12.55: $3,440.05 - $12.55 = $3,427.50
5. Add the note collected of $600: $3,427.50 + $600 = $4,027.50
Therefore, the reconciled checkbook balance is $4,027.50.
According to the options provided, your answer of A. $3,627.50 is not correct. The correct answer should be C. $5,327.50.