What You’ll Learn

Work, spend, and play—all in a week’s time. You’ll

work for money so it can pay for the basics in life,
as well as recreation on the weekend. More than
likely you’ll use a checking account to hold and
track your money coming and going.
Section 4-1 Compute the total checking account
deposit.
Section 4-2 Write a check.
Section 4-3 Figure out the balance in a check register.
Section 4-4 Calculate the present balance on a
checking account bank statement.
Section 4-5 Reconcile a check register with a bank
account statement.
Section 4-6 Compute online banking charges and
update the check register.

When Will You Ever Use This?

You need a place to store your money (and under
your bed isn’t the best place). With the bank
safekeeping your money in a checking account,
you have the security and the convenience of a
business tracking your transactions.

Key Words to Know

• deposit • check
• automatic teller • check register
machine (ATM) • balance To learn more about
• personal • bank statement checking accounts, visit
identification • service charge [Link].
number (PIN) • reconcile
• checking account • online banking

164 䊴 Chapter 4 Checking Accounts

Fleet Footed Finances

Zach Pinsky works as the manager of

Fleet Footed, a shoe store that specializes
in athletic shoes. He’s training a new
manager, Wendy Yang, who has worked
in sales for three years but has no
managerial experience. As the newest
manager, Yang will work the evening
and weekend shifts. Read how this
business operates its checking account.
Read on. Go to . . .
What’s in the Bag? . . . . . . . . . . . .p. 166

How to Avoid the Bounce . . . . . . . .p. 169

A Safe Habit . . . . . . . . . . . . . . . .p. 172

Timing Is Everything . . . . . . . . . . .p. 175

Tracking Your Money . . . . . . . . . . .p. 178

Shopping Around . . . . . . . . . . . . .p. 182

Review . . . . . . . . . . . . . . . . . . . .p. 189

165
 Deposits
You’ve got a check in your hand from your employer, but what good is that when
you need cash to fill up the car? You’ll need to deposit that check in your bank
Compute the total account. A deposit is an amount of money that you put into a bank account.
checking account If you want to make an electronic deposit, then use the automatic teller
deposit. machine (ATM) . To use an ATM machine you’ll need an ATM card (it looks
like a credit card) and a personal identification number (PIN) . The card allows
you to access your bank account and deposit your check into the machine.
Remember that:
Total Deposit ⴝ (Currency ⴙ Coins ⴙ Checks) ⴚ Cash Received

Fleet Footed Finances

What’s in the Bag? “We make deposits twice a day,” Pinsky

explains to Yang. “When you take money to deposit in the bank,
you should know how much of each kind of sales income—bills,
coins, and checks—you are depositing.”
Draw Conclusions What’s the purpose of a deposit slip?
Continued on page 169

Workshop 4:
Adding Decimals,
page 10
Workshop 5:
Subtracting Example 1
Decimals, page 12 Margaret Miller makes a deposit at an ATM. She has a check for $235.42 and a
Skill 5: Adding check for $55.47. She would like to receive $40 in cash and deposit the rest of
Decimals, page 732 the money in her checking account. What is her total deposit?
Skill 6: Subtracting STEP: Compute the total checking account deposit.
Decimals, page 733 (Currency ⴙ Coins ⴙ Checks) ⴚ Cash Received

Figure 4.1 CHECKING DEPOSIT DOLLARS CENTS

Margaret C. Miller First City Bank
CURRENCY
CASH

Date March 11, 20-- COINS

LIST SEPARATELY
7639 235 42
CHECKS

11752 55 47
Currency
Coins
Checks

SUBTOTAL 290 89
SIGN HERE IF CASH RECEIVED FROM DEPOSIT
Miller’s Account Number ➮ LESS CASH RECEIVED 40 00
Margaret C. Miller TOTAL DEPOSIT 250 89
753 243 3332 8765 213

166 䊴 Chapter 4 Checking Accounts

 CONCEPT CHECK

Complete the problems, then check your answers at the end of the chapter.
Find the total deposit.
1. ($60.00
$0.90
$14.00)  $0.00 
2. ($45.00
$80.00)  $20.00 

Example 2
Manuel Romeo is making a deposit in his checking account. He has checks
for $435.20, $271.19, and $327.96. He has cash consisting of 15 one-dollar
bills, 7 five-dollar bills, 3 ten-dollar bills, 24 quarters, 5 dimes, 15 nickels,
and 14 pennies. He would like to keep $75 in cash. What is his total deposit?
STEP: Compute the total deposit.
The currency deposit  $15
(7  $5)
(3  $10)
 $15
$35
$30
 $80
The coins deposit  (24  $0.25)
(5  $0.10)
(15  $0.05)
$0.14
 $6.00
$0.50
$0.75
$0.14
 $7.39

Figure 4.2 CHECKING DEPOSIT DOLLARS CENTS

Manuel Romeo
CURRENCY 80 00

CASH
DATE
COINS 7 39
9/27/20-- LIST SEPARATELY
85-40 435 20

CHECKS
First City Bank 116-25 271 19
Currency
Coins
Checks
897-32 327 96
SUBTOTAL 1121 74
SIGN HERE IF CASH RECEIVED FROM DEPOSIT
➮ LESS CASH RECEIVED 75 00
Manuel Romeo TOTAL DEPOSIT 1046 74
485 392 5612 3512 476

CONCEPT CHECK

Complete the problems, then check your answers at the end of the chapter.
Find the total deposit.
3. Checks: $231.09 and $987.67.
Cash: 9 one-dollar bills, 9 five-dollar bills, 8 ten-dollar bills, 14 quarters,
25 dimes, 18 nickels, and 64 pennies. Less $40.00 cash received.
4. Checks: $341.79 and $17.96.
Cash: 35 one-dollar bills, 17 five-dollar bills, 44 ten-dollar bills, 54 quarters,
36 dimes, 32 nickels, and 21 pennies.

Section 4-1 Deposits 䊳 167

 SECTION 4-1 PRACTICE

Find the subtotal and total deposit.

Less Cash Total

Currency Coins Checks Subtotal
Received Deposit

5. $ 30.00 $11.80 — a. — b.
6. 74.00 9.65 — a. — b.
7. — — $ 84.50 a. $10.00 b.
93.70
More than 500 8. — — 124.26 a. 20.00 b.
million checks are 48.79
forged every year, 9. 400.00 — 734.00 a. 35.00 b.
according to the
141.55
accounting firm
Ernst & Young. 10. 975.00 40.00 986.53 a. 80.00 b.
Some experts 91.11
estimate that
check fraud costs
American banks 11. Olive Baker stops at an ATM location in the lobby of her office building.
and businesses She has a paycheck for $173.45 and a refund check for $3. She would like
about $50 billion to receive $25 in cash and deposit the remaining amount. What is her
per year. total deposit?
12. Jess Norton stopped at an ATM location to deposit a check for $474.85 and
a check for $321.15. He received $50 in cash. What was his total deposit?
13. Jocelyn & Donnell Schelling made a deposit at an ATM location. Their
paychecks were $611.33 and $701.45 and a check from their insurance
company was $75.25. They received $150 in cash. What was their total
deposit?
14. Morgan Meers stopped at his bank to deposit his paycheck for $201.20, a
refund check from a store for $19.78, and deposit $34.23 in cash. What was
his total deposit?
15. Carole Winer deposits checks for $425.22, $883.99, and $57.05. She has cash
consisting of 45 one-dollar bills, 15 five-dollar bills, 12 ten-dollar bills, 28
quarters, 16 dimes, 19 nickels, and 65 pennies. She would like to receive $60
in cash. What is her total deposit?
16. Ignazio Rubio deposits checks for $598.20, $2,274.26, and $3,248.79. He has
cash consisting of 75 one-dollar bills, 78 five-dollar bills, 33 ten-dollar bills,
80 quarters, 32 dimes, 95 nickels, and 5 pennies. He would like to receive $40
in cash. What is his total deposit?

MAINTAINING YOUR SKILLS

Subtract.
Skill 6: Subtracting 17. $734.40  $75.00 18. $619.20  $40.00
Decimals, page 733
19. $718.32  $65.00 20. $316.37  $55.00

168 䊴 Chapter 4 Checking Accounts

 Writing Checks
First you need to open a checking account . This monetary account allows the
holder to write checks against money that has been deposited into it. After you
Write a check. open a checking account and make a deposit, you can write checks. A check directs
a bank to deduct money from your checking account to make a payment. Your
account must contain as much money as the amount of the check you are writing so
that you do not overdraw your account. To write checks you need to be able to write
dollar amounts in word form, with the decimal portion expressed as a fraction.

Fleet Footed Finances

How to Avoid the Bounce Pinsky opens the book of business

account checks to show Yang how the store’s finances operate.
He explains that managers write checks to pay for shoe
shipments, employee sales bonuses, and advertising.
Draw Conclusions What does it mean if you bounce a check?
Continued on page 172

Example 1
Workshop 1: Write the following in word form.
Writing and a. $65.29 b. $235.58
Reading Numbers, STEP: Write the amounts in word form.
page 4 29
a. $65.29 in word form is sixty-five and 100 dollars
Skill 1: Numbers,
58
page 727 b. $235.58 in word form is two hundred thirty-five and 100 dollars

CONCEPT CHECK

Complete the problems, then check your answers at the end of the chapter.
Write each of the following in word form.
1. $26.55 2. $156.92

Example 2
Margaret Miller is buying a gift at the Department Store on March 23. The cost
of the gift is $45.78. Miller is paying by check. How should she write the check?
STEP 1: Write the date. (All writing should be in pen.)
STEP 2: Write the name of the person or organization to whom payment
will be made.
STEP 3: Write the amount of the check as a numeral.
Continued on next page

S e c t i o n 4 - 2 Wr i t i n g C h e c k s 䊳 169
 STEP 4: Write the amount of the check in words with cents expressed as a
fraction of a dollar.
STEP 5: Make a notation on the check to indicate its purpose.
STEP 6: Sign the check.

Figure 4.3 Margaret C. Miller Date March 23, 20-- 202

6-32/1

Pay to the
order of Department Store $ 45.78
—78
Forty-five and 100 Dollars

First City Bank

Memo Kendra’s Birthday Margaret C. Miller
531 876 5220 2795 202

CONCEPT CHECK

Complete the problems, then check your answers at the end of the chapter.
Write each of the following as a numeral.
20
3. thirty and 100 dollars
23
4. three thousand two hundred fifty-six and 100 dollars
Manuel Romeo is buying a drill press at Harry’s Hardware Store. The cost is
$165.52. He is going to write a check. Answer the following questions about
the check:

Figure 4.4 Manuel Romeo Date 555

32-568/231

Pay to the
order of Harry’s Hardware $ 165.52

Dollars

First City Bank

Memo
565 851 2541 5867 555

5. To whom is the check payable?

6. How do you write the amount in word form?
7. What should be put in the memo portion?
8. Who signs the check?

SECTION 4-2 PRACTICE

Write each amount in word form as it would appear on a check.

9. $40.40 10. $703.00 11. $63.74

170 䊴 Chapter 4 Checking Accounts

 12. $7.94 13. $34.06 14. $66.00
15. $1,917.00 16. $17,200.00 17. $201.09
18. $172.61 19. $5,327.17 20. $47,983.39
For Problems 21 and 22, use Figure 4.5a.

Jim Liebert Date 073

Figure 4.5a 56-734/412

Pay to the
order of Tom’s Auto Body $ 247.25
—25
Two hundred forty dollars & 100 Dollars

Farmers & Merchants Bank

Memo Jim Liebert
0211 0026 538 1459 073

21. Jim Liebert is paying by check for an auto repair bill in the amount of
$247.25. Did Liebert write the amount of the check correctly, both as a
numeral and in words?
22. What is the check number Liebert used to pay for his auto repair bill?
For Problems 23 and 24, use Figure 4.5b.

Alice Chino Date 8-28-20-- 311

Figure 4.5b 116-23/111

Pay to the
order of Pugh Health Clinic $ 98.72
Ninety-eight and 72 Dollars

Bank of Canfield
Memo July bill Alice Chino
0332 0056 317 1648 311

23. Alice Chino wrote check No. 311 to Pugh Health Clinic for $98.72. Did she write
the amount in words correctly? If not, write the amount in words correctly.
24. For what purpose did Alice Chino write the check to the Pugh Health Clinic?

MAINTAINING YOUR SKILLS

Write the numeral.

Skill 1: Numbers, 15 00
25. Thirty-five and 100 dollars 26. Seventy-four and 100 dollars
page 727
Write in word form with cents expressed as a fraction of a dollar.
27. $19.25 28. $50.32 29. $435.00
30. $345.42 31. $5,274.19 32. $11,871.63

S e c t i o n 4 - 2 Wr i t i n g C h e c k s 䊳 171
 Check Registers
You use a check register to keep a record of your deposits, electronic transfers
(or automatic transfers, AT), and the checks you have written. The balance is the
Figure out the amount of money in your account. When you make a deposit, add the amount of
balance in a the deposit to the balance. When you write a check or electronically transfer funds
check register. out of your account, subtract the amount from the balance.

Important What Formulas

Question Do I Use?
Step 1: New Previous Check Automatic
How do I calculate the   
Balance Balance Amount Transfers
new balance?
Step 2: New Balance  Previous Balance
Deposit Amount

Fleet Footed Finances

A Safe Habit Yang notices that the Fleet Footed checkbook,

which is the size of a large photo album, contains many checks
printed on a single page. Each check has a “self-carbon,” which
produces a copy identical to the check. In addition, Pinsky
insists that the managers keep a separate check register, which
is a continuous record of all checks written and deposits made.
After each transaction, the manager must figure out the balance
Workshop 4: in the account.
Adding Decimals, Draw Conclusions Why is it good to get in the habit of
page 10 tracking the money in your checking account?
Workshop 5: Continued on page 175
Subtracting
Decimals, page 12
Skill 5: Adding Example 1
Decimals, page 732
Skill 6: Subtracting The previous balance in your check register is $345.98. You make a deposit of
Decimals, page 733 $75.00. You write a check for $45.00. What is your new balance?
Application A: STEP: Figure out the balance.
Formulas, page 760 $345.98
$75.00  $45.00  $375.98 new balance

CONCEPT CHECK

Complete the problems, then check your answers at the end of the chapter.
1. Balance $1,236.29 2. Balance $992.71
Deposit
235.50 AT  45.20
Balance Balance
Amount of Check  35.28 Deposit
138.84
Balance Balance

172 䊴 Chapter 4 Checking Accounts

 Example 2
Margaret Miller’s checking account had a balance of $313.54. She wrote a check
for $45.78 on March 2. On March 5 the bank made an automatic transfer (AT)
of $52.55 to pay her phone bill. She made a deposit of $240.32 on March 10.
What is the new balance in Miller’s account?
STEP: Figure out the balance.

Trans. Type Description Payment/ Deposit/

Date ✔ Balance
Figure 4.6 or Check No. of Transaction Debit (ⴚ) Credit (ⴙ)
Previous Balance  Check Amount  Automatic Transfer Balance Brought Forward 313 54
202 3/2 Department Store 45 78 267 76
AT 3/5 Phone Bill 52 55 215 21
3/10 Deposit 240 32 455 53
Previous Balance
Deposit Amount

CONCEPT CHECK

Complete the problems, then check your answers at the end of the chapter.
3. Balance $625.39 4. Balance $7,357.87
Deposit
875.80 Amount of Check  132.75
Deposit
14.27 AT  6,544.55
Balance Balance
Amount of Check  953.24 Deposit
138.84
Amount of Check  74.96 Balance
Balance

SECTION 4-3 PRACTICE

Find the new balance after each check or deposit.

Check Register
Payment/ Deposit/
✔ Balance
Debit (ⴚ) Credit (ⴙ)
Balance Brought Forward 448 35
5. 46 92
6. 216 84
7. 251 55

8. Your balance is $89.75 on May 23. 9. Your balance is $131.02 on April 4.

Deposit $156.90 on May 30. Write a $31.28 check on April 9.
Write a $34.79 check on June 1. Write a $45.92 check on April 14.
ATM withdrawal of $50.00 AT deposit of paycheck for $215.48
on June 1. on April 15.
What is your new balance? What is your new balance?
Continued on next page

S e c t i o n 4 - 3 C h e c k Re g i s t e r s 䊳 173
 10. Mac Valent opened a new checking account and deposited his paycheck for
$209.81. The check register shows his transactions since opening his account.
What is his balance after each transaction?
Trans. Type Description Payment/ Deposit/
Date ✔ Balance
Figure 4.7 or Check No. of Transaction Debit (ⴚ) Credit (ⴙ)
Balance Brought Forward 209 81
101 8/12 Electric Energy 47 15 a.
102 8/18 Grocery Store 53 03 b.
103 8/20 Department Store 107 30 c.

11. Magdala Santos’s checkbook balance was $149.21 on October 5. Her check
register shows her transactions since then. What is her balance after each
transaction?
Trans. Type Description Payment/ Deposit/
Date ✔ Balance
Figure 4.8 or Check No. of Transaction Debit (ⴚ) Credit (ⴙ)
Balance Brought Forward 149 21
571 10/6 Pettisville Flower 45 79 a.
10/9 Deposit 213 80 b.
572 10/10 Bookstore 16 94 c.
AT 10/19 Phone Co. 75 25 d.

12. Leah Ahren’s latest transactions are shown on the check register. Find her
balance after each transaction.
Trans. Type Description Payment/ Deposit/
Date ✔ Balance
or Check No. of Transaction Debit (ⴚ) Credit (ⴙ)
Balance Brought Forward 397 16
916 9/20 Baggett Auto Store 83 28 a.
9/22 Deposit 45 10 b.
917 10/3 Rolland Buchele 134 67 c.
918 10/4 First Federal S&L 201 99 d.
10/5 Deposit 139 40 e.
919 10/19 Vollmars Ceramics 111 15 f.
920 10/20 Cash 30 00 g.
921 10/22 Rapids Pharmacy 48 92 h.

MAINTAINING YOUR SKILLS

Add.
Skill 5: Adding 13. $414.85
$265.50 14. $845.96
$400.00 15. $192.78
$112.50
Decimals, page 732
Skill 6: Subtracting 16. $72.85
$393.36 17. $2,371.81
$491.48 18. $371.80
$444.75
Decimals, page 733
Subtract.
19. $579.23  $212.60 20. $347.89  $99.92 21. $261.85  $8.47
22. $141.82  $64.73 23. $3,427.80  $635.60 24. $671.82  $314.91

174 䊴 Chapter 4 Checking Accounts

 Bank Statements
When you have a checking account, you receive a bank statement from the bank
each month. It lists all your checks that the bank has cleared, including any
Calculate the automatic transfers, ATM transactions, and deposits that the bank has recorded
present balance since your last statement. A bank might tack on a service charge to your
on a checking statement. This is a fee charged for services rendered. Here’s a sample of what’s
account bank explained on your account balance:
statement.
Present Previous Service
Balance ⴝ Balance ⴙ Deposits ⴚ Withdrawals ⴚ Charges ⴙ Interest

Fleet Footed Finances

Timing Is Everything Yang flips through the monthly

statements and notices the information they provide. Each
month’s statement lists the number and amount of each check
that has been cashed. Photocopies of the cancelled checks are
attached. In addition, the statement indicates the deposits
made and a few withdrawals of cash.
Draw Conclusions What are the penalties for being overdrawn?
Continued on page 178

Example 1
Your bank statement shows a previous balance of $944.50. You make deposits
Workshop 4: of $755.50 and $210.40, and write checks for $355.50 and $125.50. You have a
Adding Decimals, $3.00 service charge and earn $0.25 in interest. What is your present balance?
page 10 STEP: Calculate the balance in the account.
Workshop 5: Previous Service
Subtracting Balance ⴙ Deposits ⴚ Withdrawals ⴚ Charges ⴙ Interest
Decimals, page 12 $755.50 $355.50
Skill 5: Adding ( ) (
 $944.50

$210.40 
$125.50  $3.00
$0.25 )
Decimals, page 732  $944.50
$965.90  $481.00  $3.00
$0.25
Skill 6: Subtracting  $1,426.65 present balance
Decimals, page 733
Application A:
Formulas, page 760

S e c t i o n 4 - 4 B ank State me nts 䊳 175

 CONCEPT CHECK

Complete the problems, then check your answers at the end of the chapter.
Previous Service Present
ⴙ Deposits ⴚ Withdrawals ⴚ ⴙ Interest ⴝ
Balance Charges Balance

1. $280.00
$120.00  $140.00  $2.50
$0.30 

2. 275.00
105.00  312.60  4.00
0.00 

Example 2
Margaret Miller received her bank statement and cancelled checks for March.
She checks the statement. Verify her present balance.

Figure 4.9 First City Bank Monthly Statement

Margaret Miller Statement Period Account Number

175 LaPlas Court 3/2 through 3/31 87652
San Diego, California 3/1 Previous Balance 313.54
2 Deposits 913.40
5 Withdrawals 554.54
Service Charge/Fee
Interest Earned
4/1 Present Balance 672.40

CHECKS
Check Date Amount Check Date Amount Check Date Amount
202 3/2 45.78 203 3/12 137.42 204 3/19 275.81

DEPOSITS/CREDITS PAYMENTS/DEBITS
Date Amount Description Date Amount Description
3/10 240.32 Deposit 3/5 52.55 Phone Bill 11564
3/15 673.08 Appliance Corp. 3/28 42.98 Elec Pwr 11020
Payroll 25760

DAILY BALANCE
Daily Balance Daily Balance Daily Balance Daily Balance
3/1 313.54 3/5 215.21 3/12 318.11 3/19 715.38
3/2 267.76 3/10 455.53 3/15 991.19 3/28 672.40

STEP: Calculate the balance in the account.

Total Deposits  $240.32
$673.08  $913.40
Total Withdrawals 
$45.78
$137.42
$275.81
$52.55
$42.98  $554.54
Previous Service
Balance ⴙ Deposits ⴚ Withdrawals ⴚ Charges ⴙ Interest
$313.54
$913.40  $554.54
 $672.40 balance

176 䊴 Chapter 4 Checking Accounts

 CONCEPT CHECK

Complete the problems, then check your answers at the end of the chapter.

Previous ⴙ Deposits ⴚ Withdrawals ⴚ Service ⴙ Interest ⴝ Present

Balance Charges Balance

3. $290.00
$120.00  $140.00  $2.70
$0.25 

150.00
110.00
4. 965.15
125.54  265.32  2.30
0.00 

175.98
210.03

30.20

SECTION 4-4 PRACTICE

Previous Service Present

Deposits Withdrawals Interest
Balance Charge Balance

5. $ 40.10 $ 200.00 $ 190.10 $2.34 $ 0.00

6. 487.67 430.75 598.17 0.00 1.38
7. 1,949.07 4,201.00 319.80 4.15 0.00

750.90
289.34
8. 9,421.99 7,509.23 1,397.86 5.60 12.47

1,412.46
1,209.32

256.40

9. A portion of Takeisha Hallett’s bank statement is shown. Her previous

balance was $271.31. What is her present balance?

Figure 4.10 CHECKS

Check Date Amount Check Date Amount Check Date Amount
304 6/11 19.45 305 6/15 21.02 307 6/30 95.98

DEPOSITS/CREDITS PAYMENTS/DEBITS
Date Amount Description Date Amount Description
6/12 115.90 Deli Payroll 11002 6/26 25.85 Gas Bill 11564
6/19 115.90 Deli Payroll 11012 6/28 2.00 Service Charge
6/26 345.85 Deposit

MAINTAINING YOUR SKILLS

Add.
Skill 5: Adding 10. $346.50
$215.50
$35.97 11. $543.07
$172.40
$351.23
Decimals, page 732
Skill 6: Subtracting 12. $917.35
$448.55
$627.25 13. $43,906.54
$3,172
$4.20
Decimals, page 733
Subtract.
14. $915.87 15. $684.31 16. $342.18 17. $2,346.39
 748.42  83.49  191.84  983.42

S e c t i o n 4 - 4 B ank State me nts 䊳 177

 Reconciling the
Bank Statement
Reconcile a check When you receive your bank statement, compare the bank statement and your
register with a check register to be sure they agree. You reconcile the statement to make sure it
bank account agrees with your check register. You may find some outstanding deposits (or
statement. outstanding checks) that didn’t post or that didn’t clear. These appear on your
register but didn’t reach the bank in time to list them on your statement. When
comparing the two, remember that:
Adjusted Statement Outstanding Checks/ Outstanding
Balance ⴝ Balance ⴚ Payments or Debits ⴙ Deposits

Fleet Footed Finances

Tracking Your Money “One of the most important jobs you

will have as a manager,” Pinsky says, “is reconciling the store’s
monthly bank statement with the information on the account’s
check register.”
“That can be tricky,” Yang says, “especially when you have
a lot of outstanding checks that haven’t been cashed yet.”
Draw Conclusions What documents are needed to reconcile
your monthly bank statement?
Continued on page 182

Example 1
Your statement balance is $598.67. You have an outstanding check for $125.44
Workshop 4: and an outstanding debit of $235.42 that didn’t post yet. You also have an
Adding Decimals, outstanding deposit of $231.98. What is your adjusted balance?
page 10 STEP: Calculate the adjusted balance.
Workshop 5: Statement Outstanding Checks/ Outstanding
Subtracting Balance ⴚ Payments or Debits ⴙ Deposits
Decimals, page 12
$598.67  ($125.44
$235.42)
$231.98
Skill 5: Adding
$598.67  $360.86
$231.98
Decimals, page 732
$469.79 adjusted balance
Skill 6: Subtracting
Decimals, page 733
Application A:
Formulas, page 760

178 䊴 Chapter 4 Checking Accounts

 CONCEPT CHECK

Complete the problems, then check your answers at the end of the chapter.
1. Statement balance $374.47 2. Statement balance $772.33
Outstanding checks  238.98 Outstanding checks  283.75
Outstanding deposits
140.00 Outstanding deposits
427.75
Adjusted balance Adjusted balance

Example 2
Margaret Miller’s check register balance is $2,261.50. She compares her
statement and check register. For each check and deposit listed on her
statement, she places a check mark next to the information in her register. She
notes that the bank paid her $0.86 in interest. Miller finds these outstanding
checks and deposits:
Check #525 $341.50 Check #527 $266.25 Deposit $709.75
How does Miller reconcile her statement?
STEP: Reconcile the balance.
Miller uses the reconciliation form on the back of her bank statement
to reconcile her account.

Figure 4.11 Reconciliation Statement

Check Register Balance $2,261.50 Statement Balance $2,160.36

Service Charges/ Oustanding Checks/
Fees Payments/Debits
Check #525 $341.50
Interest
0.86 Check #527 266.25
(Total outstanding 607.75
checks/payments/debits)
Outstanding Deposits/
Credits
Deposit 709.75
709.75
New Balance $2,262.36 Adjusted Balance $2,262.36

2261.50 0.86 2262.36

341.50 266.25 2160.36 607.75
1552.61 709.75 2262.36

CONCEPT CHECK

Complete the problems, then check your answers at the end of the chapter.
3. Asuko Naito’s check register balance is $8,754.33. He compares his statement
with his check register. He notes that the bank paid him $2.86 in interest and
charged him $1.20 for bill payment fees. He finds these outstanding checks
and deposits:
Check #845 $751.75 Check #847 $2,455.89 Deposit $805.14
Continued on next page

S e c t i o n 4 - 5 Reconc iling the B ank State me nt 䊳 179

 Reconcile the statement by filling in the blanks.

Figure 4.12 Reconciliation Statement

Check Register Balance $8,754.33 Statement Balance $11,158.49

Service Charges/ a. Oustanding Checks/
Fees Payments/Debits
Check #845 $ 751.75
Interest b. Check #847 2,455.89
(Total outstanding d.
checks/payments/debits)
Outstanding Deposits/
Credits
Deposit 805.14 e.
New Balance c. Adjusted Balance f.

SECTION 4-5 PRACTICE

Complete the table. Do the register and statement balances agree?

Check
Register Interest Service New Statement Outstanding Outstanding Adjusted
Balance Charge/Fees Balance Balance Checks Deposits Balance

4. $ 147.60 $ 0.00 $4.70 a. $ 388.29 $345.39 $ 100.00 b.

5. 505.85 0.00 9.80 a. 507.21 132.90 121.74 b.
6. 1,439.76 7.13 0.00 a. 1,360.44 432.81 519.26 b.
7. 4,581.62 22.91 0.00 a. 1,328.66 421.99 3,697.86 b.

8. David Cassadore received his bank statement and cancelled checks for the
period ending November 20. He compared the check register (Figure 4.13a)
with the cancelled checks and deposits listed on the statement (Figure 4.13b),
then placed a check mark next to the items processed. He reconciles the bank
statement (Figure 4.13c).
a. What total amount does he have in outstanding checks?
b. What total amount does he have in outstanding deposits?
c. What is his adjusted balance?
d. What is his new check register balance?
e. Do the register and adjusted balances agree?

Trans. Type Description Payment/ Deposit/

Date ✔ Balance
Figure 4.13a or Check No. of Transaction Debit (ⴚ) Credit (ⴙ)
Balance Brought Forward 389 49
047 11/03 Country Pride 47 29 ✓ 342 20
11/04 Deposit ✓ 400 00 742 20
048 11/09 General Telephone Co. 37 35 ✓ 704 85
11/15 Cash 50 00 ✓ 654 85
11/20 Deposit 191 37 846 22
049 11/20 Consumer Power Co. 44 89 801 33

180 䊴 Chapter 4 Checking Accounts

Figure 4.13b Sky Bank Monthly Statement

David Cassadore Statement Period Account Number

10/20 through 11/20 83-30283

10/20 Previous Balance 389.49

1 Deposit 400.00
3 Withdrawals 134.64
Service Charge/Fee 6.50
Interest Earned
11/20 Present Balance 648.35

CHECKS
Check Date Amount Check Date Amount Check Date Amount
047 11/03 47.29 048 11/09 37.35

DEPOSITS/CREDITS PAYMENTS/DEBITS
Date Amount Description Date Amount Description
11/04 400.00 Deposit 11/15 50.00 ATM Cash

DAILY BALANCE
Daily Balance Daily Balance Daily Balance Daily Balance
10/20 389.49 11/04 742.20 11/15 654.85
11/03 342.20 11/09 704.85 11/20 648.35

Figure 4.13c Reconciliation Statement

Check Register Balance $801.33 Statement Balance $648.35

Service Charges/ 6.50 Oustanding Checks/
Fees Payments/Debits
Check #049 $ 44.89
Interest 0.00
(Total outstanding a.
checks/payments/debits)
Outstanding Deposits/
Credits
Deposit 191.37 b.
New Balance d. Adjusted Balance c.

MAINTAINING YOUR SKILLS

Subtract.
Skill 6: Subtracting 9. $412.30  $1.25 10. $219.63  $2.50 11. $96.78  $3.00
Decimals, page 733
12. $349.82  $116.78 13. $491.60  $247.83 14. $127.80  $64.92

S e c t i o n 4 - 5 Reconc iling the B ank State me nt 䊳 181

 Online Banking
It’s 1 A.M. and you’re dying to know your account balance. Or perhaps it’s
snowing out and you need to transfer some funds. Online banking , or Internet
Compute online banking, allows you to bank from anywhere. All you need is a connection to the
banking charges Internet, and you can access your account(s) round-the-clock, even on weekends.
and update the Once you’ve logged onto your account at the online bank, you can:
check register.
• transfer funds from
Figure 4.14 Online Banking Charges
checking to savings or
Service Fee savings to checking,
Basic Monthly Charge $ 6.95
Bill Payment—first 5 N/C 0.50 • make loan payments
from checking to loan
Printed Statement 4.00
accounts,
Replace Lost Card 5.00
Overdraft 25.00
• make payments to third
International Wire Transfer 20.00 parties (such as utility
ATM Transaction Charges companies),
Local Network N/C
Regional Network Surcharge 1.00 • get information about
National Network Surcharge 2.00 account balances,
Out-of-Network Surcharge 3.00 previous deposits,
Cash Advance—2.00% of Amt. $10.00 Max
previous withdrawals,
and loan balances.

You may be charged a fee for these services. Figure 4.14 shows some online
banking charges.
Remember that:
Total Basic Bill ATM Cash
Fees ⴝ Charge ⴙ Payments ⴙ Statement ⴙ Surcharge ⴙ Advance Fee

Fleet Footed Finances

Shopping Around Pinsky’s boss has asked him to look into

how Fleet Footed might pay less in bank service fees. Pinsky is
a big fan of online banking—your account is available and live
24 hours a day, 7 days a week. He starts shopping around for
rates and packages presented by online banks, and then presents
his findings to his manager.
Draw Conclusions How might online banking affect Pinsky’s
knowledge of the money in Fleet Footed’s bank account?
Continued on page 189

182 䊴 Chapter 4 Checking Accounts

 Example 1
Workshop 18:
Tiwana Gombash uses online banking. She pays the basic charge, 7 bills, plus
Reading Tables and
Charts, page 38
she requests a printed statement. She also has ATM transactions, including
Workshop 36:
1 out-of-network, and a cash advance of $400.00. What are her total fees for
Problem Solving the month?
Strategy: Using STEP: Add the fees.
Simple Algebraic Basic Bill ATM Cash
Operations, page 74 Charge ⴙ Payments ⴙ Statement ⴙ Surcharge ⴙ Advance
Workshop 30: Fee
Problem Solving $6.95
$0.50(7  5)
$4.00
$3.00
(2%$400)
Strategy: Identify- $6.95
$1.00
$4.00
$3.00
$8.00
ing Information,  $22.95 total fees
page 62
Application A:
6.95 0.50 2.00 4.00 3.00
Formulas, page 760
Application B: 400.00 0.02 22.95
More Formulas,
page 761
Application C:
Tables and Charts,
page 762
CONCEPT CHECK

Complete the problems, then check your answers at the end of the chapter. Use
Figure 4.14 on page 182 to compute the total fees.
1. Service: Basic charge, 8 bills paid, lost card replacement.
ATM: 2 National, 2 Out-of-Network.
2. Service: Basic charge, 6 bills paid, 1 overdraft.
ATM: 3 Regional, $500 advance.

When you bank online, you need to maintain a check register to keep a record
of your finances. One feature of online banking is that you can download your
current online transactions and put the information into a computer program
(such as an Excel spreadsheet, Microsoft Money, or Quicken) that will contain
a check register.

Example 2
On March 15, Tiwana Gombash uses online banking and downloads these
transactions so she can put them on her spreadsheet where she keeps a check
register. Note that the transactions since her last log on are shown.

Continued on next page

Section 4-6 Online Banking 䊳 183

 Check
Date Amount Description
Figure 4.15 Number

03/06/20-- 400.00 ATM Withdrawal

03/06/20-- 2.00 ATM National Network Fee

03/15/20-- 1661.57 + Payee/Description: AT DEPOSIT Memo:

COMPUTER INC. EDIPAYMENT 0555

03/15/20-- 0.50 Memo: BILL PAYMENT FEE

03/15/20-- 0.50 Memo: BILL PAYMENT FEE

03/15/20-- 3341.29 CREDIT CARD PYMT TO

004:555-555 Online Payment

03/15/20-- 100.00 FINDLAY YOUTH PYMT TO

009:W555 Online Payment

03/15/20-- 30.55 1289 CHECK Memo: Food Town

03/15/20-- 153.39 AT WITHDRAWAL

Memo: INSURANCE 031202

Update the check register.

STEP: Compute the new balance.
Gombash had check number 1288 entered and started with a balance
of $2,895.90  $59.46  $2,836.44. She subtracted the $400.00 ATM
withdrawal and the $2.00 ATM fee. Then she added the payroll check
and subtracted the other items. The new balance is $469.78.

Figure 4.16 Check Register

Trans. Type Description Payment/ Deposit/
Date ✔ Balance
or Check No. of Transaction Debit (ⴚ) Credit (ⴙ)
Balance Brought Forward 2,895 90

1288 12-Mar Fabric Store 59 46 2,836 44

ATM 06-Mar ATM withdrawal 400 00 2,436 44

ATM 06-Mar ATM fee 2 00 2,434 44

AT 15-Mar Computer Inc. Payroll 1,661 57 4,096 01

Online 15-Mar Bill Payment Fee 0 50 4,095 51

Online 15-Mar Bill Payment Fee 0 50 4,095 01

Online 15-Mar Credit Card Pmt 3,341 29 753 72

Online 15-Mar Findlay Youth Pmt 100 00 653 72

1289 15-Mar Food Town 30 55 623 17

AT 15-Mar Insurance Company 153 39 469 78

184 䊴 Chapter 4 Checking Accounts

 CONCEPT CHECK

Complete the problems, then check your answers at the end of the chapter.
3. Tiwana Gombash (from Example 2) had these online transactions on April 1.
Note that the balance is $871.78.

Check
Date Amount Description
Figure 4.17 Number

04/01/20-- 1661.57 + Payee/Description: AT DEPOSIT Memo:

COMPUTER INC. EDIPAYMENT 0555

04/01/20-- 0.50 Memo: BILL PAYMENT FEE

04/01/20-- 38.49 WIRELESS STORE TO 003:4555-555

ONLINE PAYMENT

04/01/20-- 14.07 1290 CHECK Memo: Office Supply

04/01/20-- 86.95 Payee/Description: AT WITHDRAWAL

Memo: GAS OH SERV
PYMT 031202

Complete the check register for these transactions.

Figure 4.18 Check Register

Trans. Type Description Payment/ Deposit/
Date ✔ Balance
or Check No. of Transaction Debit (ⴚ) Credit (ⴙ)
Balance Brought Forward 871 78

AT 01-Apr Payroll a. b.

Online 01-Apr Bill Payment Fee c. d.

Online 01-Apr Wireless Service e. f.

1290 01-Apr Office Equip. g. h.

AT 01-Apr Gas Comp. i. j.

SECTION 4-6 PRACTICE

Use Figure 4.14 on page 182 to determine the total fees.

4. Service: Basic charge, 9 bills paid, lost card replacement.
ATM: 3 National, 3 Out-of-Network.
5. Service: Basic charge, 8 bills paid, 1 overdraft.
ATM: 3 Regional, $450 cash advance.

Continued on next page

Section 4-6 Online Banking 䊳 185

 6. On June 15 Benton Andrews uses First USA online banking and downloads
these transactions so he can put them on his spreadsheet where he keeps a
check register. Use Figure 4.19a to complete the check register for the
transactions on Figure 4.19b.

Check
Date Amount Description
Figure 4.19a Number

06/01/20-- 6.95 Online Banking Basic Charge

06/05/20-- 250.00 ATM Withdrawal

06/12/20-- 5,850.00 + AT DEPOSIT

Memo: Transfer from Savings Act. 066555

06/15/20-- 0.50 Memo: BILL PAYMENT FEE No. 6

06/15/20-- 0.50 Memo: BILL PAYMENT FEE No. 7

06/15/20-- 557.86 Credit Card PYMT TO 008-555-555

Online Payment

06/15/20-- 35.00 Fair Board Trophy PYMT TO 002:W6555

Online Payment

06/15/20-- 85.55 789 CHECK Memo: Food

06/15/20-- 853.39 AT WITHDRAWAL Memo: Real Estate Taxes

Figure 4.19b Check Register

Trans. Type Description Payment/ Deposit/
Date ✔ Balance
or Check No. of Transaction Debit (ⴚ) Credit (ⴙ)
Balance Brought Forward 1,574 99

Bank Charge 01-June Online Basic Charge a. b.

ATM 05-June ATM Withdrawal c. d.

AT 15-June Transfer from Savings e. f.

Online 15-June Bill Payment Fee g. h.

Online 15-June Bill Payment Fee i. j.

Online 15-June Credit Card Payment k. l.

Online 15-June Fair Board Trophy m. n.

789 15-June Food o. p.

AT 15-June Real Estate Taxes q. r.

186 䊴 Chapter 4 Checking Accounts

 7. Figure 4.20 shows George Kaquatosh’s end-of-month bank statement. Notice
the last activity is at the top of the list. Start at the bottom of the list and
calculate the balance for each date shown.

Figure 4.20 National City—Online Banking

Account: Checking 555-561-663 ACTIVITY
Date Amount Check Description
d. 01-Apr ? Balance
01-Apr $ 6.95 Online Banking Fee
31-Mar 78.94 5174
31-Mar 25.00 5172
31-Mar 321.20 Debit Card, Dept. Store—Point-of-Sale Purchase
31-Mar 172.73 5167
31-Mar 24.95 5170
31-Mar 252.70 5161
31-Mar 147.80 AT—American Electric Power
c. 31-Mar ? Balance
20-Mar 150.00 ATM Withdrawal
20-Mar 2.00 ATM National Network Chg.
20-Mar 0.50 Bill Payment Fee No. 8
20-Mar 1,095.73 Household Credit Online Pmt. 200-55-5555
20-Mar 65.32 5165
20-Mar 495.72 5166
b. 20-Mar ? Balance
19-Mar 2,458.50 ”+“ AT—Payroll MSNBC Inc.
19-Mar 45.62 Debit Card, Joe’s Pizza—Point-of-Sale Purchase
19-Mar 0.50 Bill Payment Fee No. 7
19-Mar 365.89 Commercial Truck Plate—Online Pmt.
a. 19-Mar ? Balance
10-Mar 0.50 Bill Payment Fee No. 6
10-Mar 468.52 Credit Card Pmt.
10-Mar 300.00 ATM Withdrawal
10-Mar 3.00 ATM Out of Network Charge
01-Mar 2,365.99 Balance

MAINTAINING YOUR SKILLS

Subtract.
Skill 6: Subtracting 8. $9,887.89  $23.61 9. $16,246.64  $887.35
Decimals, page 733
Skill 5: Adding 10. $564,648.50  $1,568.39 11. $942.35  $58.28
Decimals, page 732
Add.
12. $568.35
$98.23 13. $89,564.89
$85.21
14. $791.29
$54.68 15. $231.31
$50.00

Section 4-6 Online Banking 䊳 187

 4
CONCEPT CHECK (p. 167)
1. ($60.00
$0.90
$14.00)  $74.90
2. ($45.00
$80.00)  $20.00  $105.00
3. Checks: $231.09
$987.67  $1,218.76
Cash: $9.00
(9  $5  $45)
(8  $10  $80)  $134.00
Coins: (14  0.25  $3.50)
(25  $0.10  $2.50)
(18  $0.05 
$0.90)
($0.64)  $7.54
Total: $1,218.76
$134.00
$7.54  $1,360.30  $40.00  $1,320.30
4. Checks: $341.79
$17.96  $359.75
Cash: $35.00
(17  $5  $85)
(44  $10  $440)  $560.00
Coins: (54  0.25  $13.50)
(36  $0.10  $3.60)
(32  $0.05 
$1.60)
($0.21)  $18.91
Total: $359.75
$560.00
$18.91  $938.66

CONCEPT CHECK (p. 169, 170)

55 92
1. Twenty-six and 100 dollars 2. One hundred fifty-six and 100 dollars
3. $30.20 4. $3,256.23
52
5. Harry’s Hardware 6. One hundred sixty-five and 100 dollars
7. Drill press 8. Manuel Romeo

CONCEPT CHECK (p. 172, 173)

1. $1,471.79; $1,436.51 2. $947.51; $1,086.35
3. $1,515.46; $487.26 4. $680.57; $819.41

CONCEPT CHECK (p. 176, 177)

1. $257.80 2. $63.40
3. $307.55 4. $758.82

CONCEPT CHECK (p. 179, 180)

1. $275.49 2. $916.33
3. a. $1.20 b. $2.86
c. $8,755.99 d. $3,207.64
e. $805.14 f. $8,755.99

CONCEPT CHECK (p. 183, 185)

1. Total Fees: $6.95
$0.50(8  5)
$5.00
(2  $2.00)
(2  $3.00)
 $6.95
$1.50
$5.00
$4.00
$6.00  $23.45
2. Total Fees: $6.95
$0.50(6  5)
$25.00
(3  $1.00)
(2%  $500)
 $6.95
$0.50
$25.00
$3.00
$10.00  $45.45
3. a. $1,661.57 b. $2,533.35 c. $0.50 d. $2,532.85
e. $38.49 f. $2,494.36 g. $14.07 h. $2,480.29
i. $86.95 j. $2,393.34

188 䊴 Chapter 4 Checking Accounts

 4

Fleet Footed Finances

Review Keeping a close eye on your checking account balance keeps

you “in check,” and it makes you a smart consumer. When you’re aware
of how much you’ve got to spend, you’ll start to spend more wisely and
choose things you need and can afford, as opposed to what you want.
Calculating. Ask your family if you can be in charge of
calculating and reconciling the family checking account for two
months. Each day, record in the check register checks, transferred
funds, and deposits. Then calculate the balance. When the
monthly statement arrives, reconcile it with the balance in the
check register. If there is a discrepancy, try to figure out why.
Researching. Call your local bank and find out what happens
when a bank customer bounces a check. Must a deposit be posted
by mid-afternoon to be recorded as deposited on that day? What
about a withdrawal? Has the speed of electronic banking affected
the number of overdrawn accounts? What happens if someone
chronically overdraws his or her account? Does the bank take
some kind of action? Does it affect the customer’s credit rating?

REVIEW OF KEY WORDS

automatic teller machine check register (p. 172) checking account (p. 169)
(ATM) (p. 166) balance (p. 172) check (p. 169)
personal identification reconcile (p. 178) bank statement (p. 175)
number (PIN) (p. 166) online banking (p. 182) service charge (p. 175)
deposit (p. 166)

Match one of the key words above with a definition below.

1. to obtain agreement between two financial 6. a type of account that allows you to pay for
records by accounting for outstanding items. goods and services with a written order
2. the amount of money that you put into an instead of cash.
account. 7. the ledger where you record the deposits you
3. the amount of money in your account. made and the checks you’ve written.
4. a written order directing the bank to deduct 8. a fee charged by the bank for handling your
money from your checking account to make account.
a payment. 9. an electronic process of paying bills while
5. a record prepared by the bank listing all connected to the Internet.
transactions the bank has recorded.

St udy Guide and Ass essme nt 䊳 189

 4

SECTION OBJECTIVE 4-1 AND EXAMPLES

Compute the total checking account deposit.

Robin Jenkins deposited currency totaling $119.00 and coins totaling $12.36.
She also deposited a check for $532.19. What was her total deposit?
STEP: Compute the total checking account deposit.
(Currency ⴙ Coins ⴙ Checks) ⴚ Cash Received
$119.00
$12.36
$532.19  $663.55 total deposit
REVIEW EXERCISES
10. Christopher Cummings deposited a check for $86.55 and a check for $387.44.
He received $75.00 in cash. What was his total deposit?
11. Achak Akule has a check for $256.00 and a check for $194.55. He would like to
deposit the checks and receive 3 ten-dollar bills, 7 one-dollar bills, 8 quarters,
and 3 dimes. What is his total deposit?
12. You deposit the following in your checking account: 13 one-dollar bills, 8
five-dollar bills, 11 half-dollars, 18 quarters, 109 dimes, 63 nickels, 12 pennies,
and a check for $25.66. What is your total deposit?
13. You deposit a check for $287.66 and one for $873.55 in your checking account.
You would like to receive 3 ten-dollar bills, 4 one-dollar bills, 16 quarters, and
13 dimes. What is your total deposit?

SECTION OBJECTIVE 4-2 AND EXAMPLES

Write a check.
STEP: Write $403.98 in words as it would appear on a check.
98
Four hundred three and 100 dollars
REVIEW EXERCISES
14. Carla Caputo wrote a check to Archer’s Grocery Store in the amount of
$57.02. Write the amount of the check in words with cents expressed as a
fraction of a dollar.
15. Keisha Jackson wrote a check to Greenstone Electric in the amount of $123.45.
Write the amount of the check in words with cents expressed as a fraction
of a dollar.
Write each amount in word form as it would appear on a check. Some amounts
might require that the cents be expressed as a fraction of a dollar.
16. $845.00 18. $13,586.16
17. $54.33 19. $387.21

190 䊴 Chapter 4 Checking Accounts

 4
SECTION OBJECTIVE 4-3 AND EXAMPLES

Figure out the balance in a check register.

Harrison Rohen’s checkbook balance was $376.22 on May 25. His check register
shows the transactions since. What is his balance after each transaction?
STEP: Figure out the balance.
New Balance ⴝ Previous Balance ⴚ Check Amount
New Balance ⴝ Previous Balance ⴙ Deposit Amount

Check Register
Trans. Type Description Payment/ Deposit/
Date ✔ Balance
or Check No. of Transaction Debit (ⴚ) Credit (ⴙ)
Balance Brought Forward 376 22
234 6/27 ABC Cable TV 34 12 a.
235 6/28 Water Company 15 77 b.
6/28 Deposit 776 50 c.
236 6/29 Carolina Apt. 540 00 d.

a. $342.10 b. $326.33 c. $1,102.83 d. $562.83

REVIEW EXERCISES
Find the new balance after each check or deposit.

Check Register
Payment/ Deposit/
✔ Balance
Debit (ⴚ) Credit (ⴙ)
Balance Brought Forward 398 12
20. 112 21
21. 186 34
22. 28 27
23. 129 11

SECTION OBJECTIVE 4-4 AND EXAMPLES

Calculate the present balance on a checking account bank statement.

Kippen Carter received his checking account statement and cancelled checks
for July. His previous balance was $966.51. What is his present balance?
STEP: Calculate the new balance.
Previous Deposits Checks Service
ⴙ ⴚ ⴚ ⴙ Interest
Balance Recorded Paid Charge
Continued on next page

St udy Guide and Ass essme nt 䊳 191

 4
Checks and Other Charges Deposits and Credits Balance

Date Number Amount Date Amount

7/06 213 $712.90 7/08 $112.54

7/14 214 34.29 7/15 459.96

Interest 1.29

Service Charge 5.60 Deposit 572.50

$966.51
$572.50  $747.19  $5.60
$1.29  $787.51 present balance

REVIEW EXERCISES
24. Berta Varblow received her checking account statement and cancelled checks
for November. Her previous balance was $851.97. What is her present balance?

Checks and Other Charges Deposits and Credits Balance

Date Number Amount Date Amount

3/17 333 $ 34.55 3/18 $259.00

3/18 334 123.44 3/20 102.00

3/22 335 210.00 3/21 50.00

Service Charge 3.45

Previous Total Total Service Present

Interest
Balance Deposits Checks Charge Balance

25. $ 405.80 $ 76.13 $ 300.00 $ 5.00 $ 0.00

26. 187.90 1,200.99 456.66 0.00 2.23

27. 73.66 1,395.44 123.99 2.45 1.96

28. 755.32 231.33 878.66 2.50 2.88

SECTION OBJECTIVE 4-5 AND EXAMPLES

Reconcile a check register with a bank account statement.

STEP: Calculate the adjusted balance.
Statement Balance ⴚ Outstanding Checks ⴙ Outstanding Deposits

192 䊴 Chapter 4 Checking Accounts

 4
a. $4,561.20
$6.59  $5.05  $4,562.74
Check Register Balance $4,561.20 $357.99
Interest 6.59 2.33 b. $3,987.00  $75.74
$651.48  $4,562.74
Service Charge 5.05 2.15 c. $357.99
$2.33  $2.15  $358.17
New Balance a. c.
d. $476.35  $435.18
$317.00  $358.17
Statement Balance 3,987.00 476.35
Outstanding Checks 75.74 435.18
Outstanding Deposits 651.48 317.00
Adjusted Balance b. d.

REVIEW EXERCISES
Complete the table.
Check Register Interest Service New Statement Outstanding Outstanding Adjusted
Balance Charge Balance Balance Checks Deposits Balance

29. $176.55 $0.00 $4.34 — — — —

30. 525.79 0.00 5.05 — — — —
31. — — — — $477.09 $404.93 $100.05
32. — — — — 306.55 129.65 343.84

SECTION OBJECTIVE 4-6 AND EXAMPLES

Compute online banking charges and update the check register.

Hasheem Warren uses online banking. Last month, Hasheem had these charges:
basic charge of $7.50, 8 service charges at $0.50 each, and $4.00 for a printed
statement. Hasheem also had ATM fees of $3.00 for out-of-network use and a cash
advance fee of 2 percent of $300. What are the total fees?
STEP: Add the fees.
Basic Charge ⴙ Bill Payments ⴙ Statement ⴙ ATM Surcharge ⴙ Cash Advance Fee
$7.50
(8  $0.50)
$4.00
$3.00
(0.02  $300)
 $7.50
$4.00
$4.00
$3.00
$6.00
 $24.50 total fees
REVIEW EXERCISES
33. Tula Woods uses online banking. Last 34. Rufus Collier uses Savings and Loan online
month Woods had these charges: basic banking. Last month Collier had these
charge of $6.95, 7 service charges at charges: basic charge of $7.95, 6 service
$0.50 each, and $5.00 to replace a lost charges at $0.70 each, and $25.00 for an
card. Woods also had ATM fees of $4.00 overdraft charge. He also had ATM fees
for out-of-network use and a cash advance of $2.00 for using the regional network
fee of 2 percent of $200. What are the and a cash advance fee of 2.5 percent of
total fees? $400. What are the total fees?

St udy Guide and Ass essme nt 䊳 193