Question

You have just received your bank statement, which shows that you have a balance of 562.73. However, you wrote your cousin a check for 150, and she has not cashed it yet. Your paycheck, which was direct deposited in your account after thr statement, was 893.86. You also wrote a check for your rent that was 400 and spent 73.26 on groceries this morning. What do you need to do to reconcile your account and what total will you get when you do?

Answer 1

To reconcile your bank account, you need to account for all pending transactions, including those that have not yet cleared. Here’s a step-by-step guide to help you determine your current balance.

1. Current Balance from Bank Statement:

   • $562.73

2. Pending Check to Cousin:

   • Subtract the check you wrote for your cousin (which hasn't been cashed yet).
   • $562.73 - $150 = $412.73

3. Direct Deposit (Paycheck):

   • Add your recent paycheck that was direct deposited.
   • $412.73 + $893.86 = $1,306.59

4. Check for Rent:

   • Subtract the rent check you wrote.
   • $1,306.59 - $400 = $906.59

5. Groceries Expense:

   • Subtract the amount spent on groceries.
   • $906.59 - $73.26 = $833.33

By following these steps, your reconciled total balance would be $833.33.

Summary

• Initial Balance: $562.73
• Minus Check to Cousin: -$150.00
• Plus Paycheck: +$893.86
• Minus Rent Check: -$400.00
• Minus Groceries: -$73.26

Final Balance: $833.33