Question

The Porello's have a balance of $725.12 in their check register.

On their bank statement, the balance on the account is $984.42. Not reported on the bank statement are outstanding checks totaling $309.30. There in an outstanding deposit of $50.
What is the revised bank statement balance? Does the account reconcile?

Answer 1

The revised bank statement balance in this case is $725.12 and the account reconciles.

Step-by-step explanation:

To find the revised bank statement balance, we need to start with the balance on the bank statement and adjust for the outstanding checks and deposits that are not reported.

Balance on bank statement: $984.42
Outstanding checks: $309.30
Outstanding deposit: $50

To find the revised balance, subtract the total amount of outstanding checks and add the outstanding deposit to the balance on the bank statement.

Revised bank statement balance = Balance on bank statement - Outstanding checks + Outstanding deposit

Revised bank statement balance = $984.42 - $309.30 + $50

= $725.12

The revised bank statement balance is $725.12.

The account reconciles when the revised balance matches the balance in the check register, which in this case it does.