Moore Company Reconciled Balance Inquiry

Understanding Moore Company's Reconciled Balance

Moore Company has a checkbook balance of $1,999.10, while the bank statement indicates a balance of $1,981.54. Moore noticed a bounced check for $52.88 and a service charge of $12.10 on his bank statement. Additionally, interest earned on the checking account amounted to $33.81. Moore also discovered that a deposit of $350 was not recorded on the bank statement, and checks written for $363.61 had not been processed by the bank.

The reconciled amount in this instance is $7,830, which is less than the checkbook balance. Moore should verify his records to identify any possible mistakes, such as duplicate check recordings or other errors, to address this discrepancy.

We need to consider the items listed on the bank statement and those in Moore's checkbook to reconcile the amount. We start by deducting the $52.88 bounced check and the $12.10 service charge from the bank statement balance of $7,980, resulting in $7,860. Next, we subtract the outstanding checks totaling $363.61: $7,860 - $363.61 = $7,496.39.

By recalculating and adjusting for the unrecorded deposit and outstanding checks, the adjusted reconciled balance for Moore Company is $7,496.39. This process ensures that both the checkbook and bank statement reflect the same reconciled balance.