Reconcile the account?

Question

carol found out her bank statement and checkbook balance were different. The following info needed to be considered .after looking over both sources of information.

BANK STATEMENT BALANCE:$502.00; SERVICE CHARGE:$12.00;
DEPOSITS IN TRANSIT: none

checks outstanding: No. 1089 = $50.00
No 1090= $172.50

Checkbook balance $291.50

RECONCILE THE BALANCE

Answer 1

The key is the service charge. She does not have this recorded. Here is the reconcilation:

$502 Statement
$12 Add back
-$50 She recorded the check in her balance, but not in bank
-$172.5 Same as above
= $291.5 Her checkbook balance

Answer 2

Checkbook will not balance according to bank statement.
She must deduct $12.00 from the checkbook to balance with the bank statement.
Her checkbook should be $291.50-$12.00=$279.50
The checkbook and the statement would then balance.
$502.00-$50.00-$172.50=$279.50