Erin has a balance of $1,150.34 in her check register. On her statement, the balance of her account is $844.93. Not reported on the bank statement are deposits of $125.56, $50, and $212.34. There are outstanding checks in the amount of $15 and $78.25 and an ATM withdrawal of $40. After Erin reconciles her check register with her statement, what entry does she need to make in her register?

Question

Mathematics

Lauren Spencer

1 October, 22:16

Erin has a balance of $1,150.34 in her check register. On her statement, the balance of her account is $844.93. Not reported on the bank statement are deposits of $125.56, $50, and $212.34. There are outstanding checks in the amount of $15 and $78.25 and an ATM withdrawal of $40. After Erin reconciles her check register with her statement, what entry does she need to make in her register?

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Answers (2)

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Gerardo Hobbs · Answer 1

D - - 50.76

Belinda Wheeler · Answer 2

Erin must first reconcile her bank account:

She must add to her bank balance all the deposits in transit = $125.56 + $50 + $212.34 = $387.90

then she should subtract all outstanding checks = $15 + $78.25 = $93.25

reconciled bank statement = $844.93 + $387.90 - $93.25 = $1,039.58

if her check register shows a $1,150.34 balance and her reconciled bank statement is $1,039.58, then there is a $10.76 difference that must be accounted for.

The $10.76 are probably bank fees and charges that Erin has not recorded yet. Therefore, she should check her bank statement and look for any charged fees (ATM withdrawal charges + account fees) and then record them properly.

*ATM withdrawals are automatically recorded by the bank, so they do not have to be considered in the reconciliation, there is no such thing as outstanding ATM withdrawal.