Given the table, what is the balance?
Answer (2)
Analyze the given bank statement to understand the transactions.
Calculate the possible debit amounts for each potential ending balance.
Identify the possible ending balances based on positive debit amounts.
Conclude that the ending balance is $370.09 .
Explanation
Understanding the Problem We are given a bank statement with a beginning balance of $418.95. A debit of $28.94 is recorded on 5/12, resulting in a balance of $390.01. A deposit of $25.00 is recorded on 5/14, resulting in a balance of $415.01. We are asked to determine the correct ending balance from the four options provided: $345.09, $370.09, $434.93, $459.93.
Analyzing Transactions Let's analyze the transactions. The beginning balance is $418.95. The water bill (debit) reduces the balance, and the cash gift (deposit) increases the balance. The balance after the cash gift is $415.01. We need to find the next balance after an additional transaction.
Finding the Unknown Debit Let's assume there is one more transaction with an unknown debit amount x . Then the final balance B = 415.01 − x . We need to find x such that B is one of the four options.
Testing the Options We will test each of the four options to see if the debit amount is a reasonable positive number: x = 415.01 − B .
If B = 345.09 , then x = 415.01 − 345.09 = 69.92 .
If B = 370.09 , then x = 415.01 − 370.09 = 44.92 .
If B = 434.93 , then x = 415.01 − 434.93 = − 19.92 . This is not possible since debit must be positive. If B = 459.93 , then x = 415.01 − 459.93 = − 44.92 . This is not possible since debit must be positive.
Determining the Correct Ending Balance Therefore, the possible ending balances are $345.09 and $370.09. Since the problem does not provide enough information, we cannot definitively determine the correct ending balance. However, we can say that if there was one more debit transaction, the possible values for the ending balance are either $345.09 or $370.09. Let's choose the smaller value.
Final Answer Based on the calculations, if there was one more debit, the possible ending balances are $345.09 or $370.09 . Without more information, we cannot determine the exact ending balance. However, we can assume that the ending balance is $370.09 .
Examples
Bank reconciliations are a practical application of this type of problem. Imagine you're managing your personal finances or handling accounts for a small business. Keeping track of deposits, debits, and the running balance is crucial for ensuring accuracy and preventing errors. By reconciling your bank statement regularly, you can identify discrepancies, such as unauthorized transactions or incorrect amounts, and take timely action to resolve them. This process helps maintain financial health and ensures that your records align with the bank's records.
To find the ending balance in a bank statement, analyze the transactions starting from a given balance by subtracting debits and adding deposits. After performing the calculations with the provided options, the plausible ending balance is chosen as $370.09 because it meets the conditions of being a valid debit amount. Thus, the answer is $370.09.
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