On december 31 the checkbook balance of ray co. was $5,420.95. the bank statement balance showed $5,102.88. checks outstanding totaled $813.53. the statement did not show a deposit in transit of $1,102.95. check charges were $15.88. the company earned interest income of $29.32 that was shown on the report. the bookkeeper forgot to record a check for $42.09. the reconciled balance is:

The answer is: $5,392.30

Explanation:

In order to reconcile the checkbook balance of the company we must start with the balance statement from the bank, then we add any deposits in transit and finally we deduct outstanding checks.

We star with the bank statement balance          $5,102.88

We add the deposit in transit                               $1,102.95

Finally we deduct outstanding checks               ($813.53)      

The reconciled balance should be:                      $5,392.30

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