. The bank statement of July 31 for Walgreens showed a balance of $6,008.10, and the checkbook showed a balance of $1,900.40. The bookkeeper of Walgreens noticed from the bank statement that the bank had collected a note for $666.66. There was a deposit in transit made on July 1 for $1,100.10 along with the outstanding checks of $4,580.54. Check charges were $39.40. What's the reconciled balance?
A. $2,527.66
B. $5,227.66
C. $2,572.66
D. $5,272.66
My answer is A.
$2,527.66
To determine the reconciled balance, we need to go through the process of bank reconciliation by considering the given information. Let's break it down step-by-step:
1. Start with the adjusted bank balance:
Bank balance: $6,008.10
2. Add the collection of the note by the bank:
Bank balance + Note collection: $6,008.10 + $666.66 = $6,674.76
3. Subtract the outstanding checks:
$6,674.76 - $4,580.54 = $2,094.22
4. Add the deposit in transit:
$2,094.22 + $1,100.10 = $3,194.32
5. Subtract the check charges:
$3,194.32 - $39.40 = $3,154.92
6. Compare the adjusted bank balance to the checkbook balance:
Checkbook balance: $1,900.40
7. Reconciled balance = Adjusted bank balance - Checkbook balance:
$3,154.92 - $1,900.40 = $1,254.52
Therefore, the reconciled balance is $1,254.52.
It seems your answer of A. $2,527.66 is incorrect. The correct answer is not listed among the given options. Please double-check your calculations.
To determine the reconciled balance, we need to adjust the checkbook balance based on the information provided.
1. Start with the checkbook balance: $1,900.40
2. Add any deposits in transit: + $1,100.10
3. Subtract any outstanding checks: - $4,580.54
4. Subtract any check charges: - $39.40
Now, let's calculate the resulting balance:
Checkbook balance: $1,900.40
+ Deposits in transit: $1,100.10
- Outstanding checks: $4,580.54
- Check charges: $39.40
Balance after adjustments: (1,900.40 + 1,100.10 - 4,580.54 - 39.40) = -$2,519.44 (negative balance)
To reconcile the balance, we need to consider the collected note of $666.66 as an additional deposit:
Balance after adjustments + Collected note: -$2,519.44 + $666.66 = -$1,852.78 (negative balance)
Finally, we need to compare this adjusted balance to the bank statement balance of $6,008.10. Since the adjusted balance is negative, it means there are additional outstanding checks or transactions not yet recorded in the checkbook.
To find the reconciled balance, we need to subtract the adjusted balance from the bank statement balance:
Bank statement balance: $6,008.10
- Adjusted balance: $1,852.78 (negative balance)
Reconciled balance: $6,008.10 - $1,852.78 = $4,155.32
Therefore, the correct answer is not A, but rather D. $4,155.32.