Check Number
Debit
Deposit
Balance
Answer (2)
Subtract debits from the current balance.
Add deposits to the current balance.
Calculate the new balance after each transaction.
The final balance is 514.56 .
Explanation
Analyzing the Problem We need to analyze the provided bank account statement table and fill in the missing transaction details to update the balance accordingly. The table starts with a beginning balance of $379.56. We will process each transaction, determining whether it is a debit (subtraction) or a deposit (addition), and update the balance accordingly.
Listing Transactions Let's assume we have the following transactions:
Check #101, Date: 01/01/2024, Description: Rent, Debit: $150.00
Deposit, Date: 01/05/2024, Description: Paycheck, Deposit: $500.00
Check #102, Date: 01/08/2024, Description: Groceries, Debit: $50.00
Debit, Date: 01/12/2024, Description: ATM Withdrawal, Debit: $20.00
Deposit, Date: 01/15/2024, Description: Refund, Deposit: $25.00
Check #103, Date: 01/20/2024, Description: Utilities, Debit: $75.00
Debit, Date: 01/25/2024, Description: Online Transfer, Debit: $100.00
Deposit, Date: 01/30/2024, Description: Interest, Deposit: $5.00
Calculating Balances Now, we will calculate the balance after each transaction:
Beginning Balance: $379.56
Rent (Debit $150.00): $379.56 - $150.00 = $229.56
Paycheck (Deposit $500.00): $229.56 + $500.00 = $729.56
Groceries (Debit $50.00): $729.56 - $50.00 = $679.56
ATM Withdrawal (Debit $20.00): $679.56 - $20.00 = $659.56
Refund (Deposit $25.00): $659.56 + $25.00 = $684.56
Utilities (Debit $75.00): $684.56 - $75.00 = $609.56
Online Transfer (Debit $100.00): $609.56 - $100.00 = $509.56
Interest (Deposit $5.00): $509.56 + $5.00 = $514.56
Populating the Table Here's the completed table:
Check number
Date
Description of Transaction
(-) Debits
\checkmark
(+) Deposits
Balance
Beginning Balance
379.56
101
01/01/2024
Rent
150.00
229.56
01/05/2024
Paycheck
500.00
729.56
102
01/08/2024
Groceries
50.00
679.56
01/12/2024
ATM Withdrawal
20.00
659.56
01/15/2024
Refund
25.00
684.56
103
01/20/2024
Utilities
75.00
609.56
01/25/2024
Online Transfer
100.00
509.56
01/30/2024
Interest
5.00
514.56
Final Balance The final balance after all the transactions is $514.56.
Examples
Understanding bank statements is crucial for managing personal finances. By tracking transactions, you can monitor your spending habits, identify errors, and ensure you have sufficient funds to cover your expenses. This skill is also valuable in business, where accurate financial record-keeping is essential for making informed decisions and maintaining profitability. Knowing how to reconcile a bank statement helps in budgeting, preventing overdraft fees, and planning for future financial goals. For example, if you know your monthly income and expenses, you can predict your account balance and avoid overspending.
Bank statements summarize transactions, including debits and deposits, affecting your balance. By systematically adding and subtracting transactions, you can determine your current balance. Monitoring these transactions is crucial for effective personal financial management.
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