Question

I do not understand business math at all. Please help me.

Answer 1

It seems like they started with 3420.00

Then they subtracted off the service charge (16) and the NSF check (104.65)

3,420.00-16-104.65 = 3,299.35

Answer 2

The outstanding checks and deposit would probably already be on the books

Answer 3

Do you think you could help me go through 9 more? I honestly don't understand this class at all. I did the work but I can't get any of the answers.

Answer 4

Sure I can try my best. Accounting isn't my best subject but I do ok at it. What's the next question?

Answer 5

I want to say it's A but I might be off by a lot idk

Answer 6

It's actually choice B

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Both the bank and the books of the company are not the correct balance

Let's focus on the bank statement for now

The bank says the balance is $6,151.11
However, the bank hasn't deducted the checks made out for payment (5545.09) yet. Also, the bank has not added on the deposit made on Oct 31 (2837.77)


So this means we have
6151.11-5545.09+2837.77 = 3,443.79

Which is choice B

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Now let's turn to the company's books

The company says that the balance is $2,160.14

But the company needs to add on credited amount (1389.25) and subtract off the charge for the checks (105.60)

So

2160.14+1389.25-105.60 = 3,443.79

and we arrive at the same answer: Choice B

Answer 7

To the bank, the charge for the checks (105.60) is already known and built into the balance of the bank statement. There is no need to subtract from that since the banker(s) did that already. The same can be said about the credited amount (1389.25). The bankers already added that in. So if you did add it onto the bank balance, you'd be double counting dollars.

Answer 8

oh okay that makes sense. My dad says the answer is C but I think it's D

Answer 9

ok found the answer, I think. I just need to check it by trying it from the other side

Answer 10

Let's focus on the company's books only. We'll use the bank statement to help reconcile (ie update the company's balance to the proper balance).



Sunfresh, Inc. Books
Balance = 6917.63
Looking at the bank statement, we see
Interest Earned = 59.60
Service Charge = 37.25
Outstanding Deposit = 2848.89


The company already knows about the outstanding deposit. However it does not know about the bank credit and forgot about the check payed out, so,


6,917.63+59.60-37.25+4,270.40-461.52 = 10,748.86



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Now let's focus on the bank statement and use the company's books to update the bank balance to the correct balance


Bank Statement:
Balance = 8737.35


On the company's books we have
Outstanding Deposit = 2848.89
Outstanding checks = 837.38


This means,

8,737.35+2848.89-837.38 = 10,748.86


So however you approach it, the reconciled balance is $10,748.86


The final answer is therefore choice A

Answer 11

Be careful. It might be tempting to pick choice B because they look so similar. The only difference is the 4 and 8 are swapped.

Answer 12

yeah I almost did that lol

Answer 13

same here, I guess we all have a bit of dyslexia sometimes lol

Answer 14

okay now this has to be C.

Answer 15

Focus on the company books. The goal is to take the company balance and update it to the proper balance. We do this by looking at the bank statement.

Advance Co Books
Balance = 5691.99

Look at the bank statement, we see
Monthly service charge = 37.65
Interest Earned = 30.79

The bookkeeper failed to record a check payed out (52.61)


5691.99-37.65+30.79-52.61 = 5,632.52


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Now move to the bank statement and look at the balance. We'll use the company books to update the bank balance to the proper figure


Bank balance = 4890.18


The bank failed to reflect a deposit of $1433.84
We have $691.50 in outstanding checks to be paid out that the bank also forgot about (or hasn't updated yet)


4890.18+1433.84-691.50 = 5,632.52


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So the final answer is choice A

Answer 16

You swapped the 5 and 2 at the end

Answer 17

Jayne's Checkbook
Balance = 8075.10


Bank statement says
Interest earned = 53.23
Charge for printed checks = 37.90
check to be paid out (not in her check register) = 55.85


8075.10 + 53.23 - 37.90 - 55.85 = 8,034.58


Answer is choice C


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Bank Statement
Balance = 7617.17


Jayne's check register says
Deposit = 1043.73
Outstanding Check paid out = 626.32


7617.17+1043.73-626.32 = 8,034.58


This is another way to get to the same answer of choice C


So you are correct. Nice work

Answer 18

Checkbook balance = 43,676.09

Bank credit = 2,160.00
Bank Service charge = 15.00


43,676.09+2,160.00-15 = 45,821.09


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Bank Balance = 49,668.90

Outstanding deposits = 8,474.44
Outstanding checks = 12,322.25


49,668.90+8,474.44-12,322.25 = 45,821.09


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You are correct again. The answer is choice A

Answer 19

@jim_thompson5910

Answer 20

one moment

Answer 21

More Co Books balance = 7447.50

bank credit = 1238.00
bank service charge = 42.00
check error = 321 instead of 213


7447.50+1238.00-42.00-321+213 = 8,535.50


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Bank Balance = 8694.50

Deposits in Transit = 1260.00
Outstanding Checks = 1419.00


8694.50+1260.00-1419.00 = 8,535.50


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The final answer is choice A

Answer 22

Take note how the error correction was done by adding on $213 (to undo the error), then subtracting off the proper check amount of $321

Answer 23

so it's A?

Answer 24

yes

Answer 25

omg thank you :) i got 10/10 you are the best!!!!!!!!!

Answer 26

glad to be of help

Answer 27

i wish i could give you 1000+ medals lol