On May 1, 2004 the Jones Company received a bank statement that showed a $2,950

Question

On May 1, 2004 the Jones Company received a bank statement that showed a $2,950 balance. Mr. Jones showed a $4,010 checking account balance. The bank did not return check No. 124 for $1080 and check No. 138 for $720. A $3,200 deposit made on

April 30 was in transit. The bank charged Mr. Jones $12 for check printing and $18 for an NSF check. Mr. Jones forgot to record a $30 withdrawal at the ATM. The bank also collected a $400 note for Mr. Jones. Determine the reconciled balance.

Select one:

a. 4350 dollars

b. 3450 dollars

c. 4320 dollars

d. 3950 dollars

Explanation / Answer

The answer is: a. 4350 dollars

Mr. Jones current checking account balance of $4010 will already account for the outstanding checks and the $3200 deposit.

It will not account for the $12, $18 and $30 expenses. It also will not have the collected $400 note in it.

Reconciled balance = $4010 - $12 - $18 - $30 + 300 = $4350

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