Mike Rice received his bank statement from Joll Bank indicat

Mike Rice received his bank statement from Joll Bank indicating a balance of $5,397. Rice\'s checkbook showed a balance of $4,910. Mike noticed that checks outstanding were $597. The bank statement also revealed NSF charges for $90 and a service charge of $20. The reconciled balance is:

Solution

You can calculate the reconciled balance as below

Reconciled balance = statement balance - check outstanding amount
   = $ 5397 - $ 597
   = $ 4800
or you can also calculate it by Checkbook balance - fees charged by the bank(NSF , service charge etc).