Asked by Mitchell Peters on May 26, 2024
Verified
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?
A) Adjusting entry of $101.76
B) Adjusting entry of -$101.76
C) Adjusting entry of $50.76
D) Adjusting entry of -$50.76
Check Register
A record of all checks written, deposits made, and balances in a checking account, used for managing finances.
Bank Statement
A summary of financial transactions that have occurred over a given period on a bank account.
Outstanding Checks
Checks that do not appear on the bank statement.
- Reconcile discrepancies between bank statements and personal accounting records.
Verified Answer
MH
MAGED HENEINMay 28, 2024
Final Answer :
D
Explanation :
Erin's adjusted bank statement balance should include the deposits not yet recorded ($125.56 + $50 + $212.34 = $387.90) and subtract the outstanding checks ($15 + $78.25 = $93.25) and ATM withdrawal ($40). So, $844.93 + $387.90 - $93.25 - $40 = $1,099.58. The difference between her check register ($1,150.34) and the adjusted bank statement balance ($1,099.58) is $50.76, which she needs to subtract from her register, hence -$50.76.
Learning Objectives
- Reconcile discrepancies between bank statements and personal accounting records.