if a bank statement shows a balance of $750, and you have outstanding checks totaling $125 and outstanding…

if a bank statement shows a balance of $750, and you have outstanding checks totaling $125 and outstanding deposits of $50, what is the adjusted balance? $825 $775 $675 $625 which of the following is not typically considered when reconciling a bank statement? outstanding checks outstanding deposits bank service charges future planned expenses

if a bank statement shows a balance of $750, and you have outstanding checks totaling $125 and outstanding deposits of $50, what is the adjusted balance? $825 $775 $675 $625 which of the following is not typically considered when reconciling a bank statement? outstanding checks outstanding deposits bank service charges future planned expenses

Answer

Explanation:

Step1: Adjust the bank balance

The formula for adjusted balance is ( \text{Adjusted Balance}=\text{Bank Statement Balance}-\text{Outstanding Checks}+\text{Outstanding Deposits} ). Given ( \text{Bank Statement Balance} = 750), ( \text{Outstanding Checks}=125), ( \text{Outstanding Deposits} = 50). Substitute the values into the formula: (750 - 125+50). First, calculate (750-125 = 625). Then, (625 + 50=675).

Step2: Analyze bank - statement reconciliation items

  • Outstanding checks: These are checks issued but not yet cleared by the bank, so they are considered in reconciliation.
  • Outstanding deposits: These are deposits made but not yet recorded by the bank, so they are considered in reconciliation.
  • Bank service charges: These are charges by the bank that may not be in the company's books initially, so they are considered in reconciliation.
  • Future planned expenses: These are not yet transactions (either on the bank's side or the company's side in terms of current - period accounting for bank - statement reconciliation), so they are not considered.

Answer:

For the first question: ( $675). For the second question: Future planned expenses.