Question

Megan used a reconciliation worksheet provided by her bank. Line 5 should equal line 6 at the end of the reconciliation, but it does not.
Friendly Bank Reconciliation Worksheet
Amount
1. Enter the statement closing balance.
$
487
13
2. Enter the sum of any outstanding deposits or credits.
$
186
68
3. Add lines 1 and 2.
$
673
81
4. Enter the sum of any outstanding checks or debits.
$
174
01
5. Subtract line 4 from line 3.
$
499
80
6. Enter your checkbook balance.
$
362
60
Note: Lines 5 and 6 should be equal at the end of the reconciliation.

Megan wants to first look for a single transaction that could have caused this problem with reconciliation. What is the amount of the transaction that Megan should look for in order to find a solution to the problem?
a.
$325.79
b.
$137.20
c.
$12.67
d.
$313.20

Answer 1

Find the difference between line 5 and line 6: 499.80 − 362.60 = 137.20.
So Megan should look for a single missing/incorrect transaction of $137.20 — answer b.