Chapter 4
Real World Word Problems

1. Citibank charges $17 for 150 checks. In Sunday's, Boston Globe, you can order 200 checks for $5.50 as a first time customer. Shipping cost is $1.95. What is the total savings by getting your checks from the advertisement in The Sunday Boston Globe? 2. Ranch Company received a bank statement showing a bank balance of $9,732. Ranch's bookkeeper noticed that the bank collected a $2,400 note. A $500 June 1 deposit was in transit. Outstanding checks for the month were $492. The bank charged a $15 service charge. Ranch forgot to record a $45 withdrawal from the ATM. Could you help Ranch's bookkeeper prepare a reconciliation assuming Ranch has a $7,400 checkbook balance? 3. Alice Kool has a checking account with Citizens Bank. Her current balance June 1 was $1,017.20. For the month of June, the following information was recorded in her check register. What is her ending checkbook balance on June 30? June 8 | Check No. 611 | Amazon.com | $81.96 | 15 | Check No. 612 | Dell Computer | 33.10 | 19 | Deposit | | 800.40 | 20 | Check No. 613 | Sprint | 110.22 | 24 | Check No. 614 | Krispy Kreme | 217.55 | 29 | Deposit | | 198.10 | 4. Anna Carmen, who banks in New Jersey, wants to balance her checkbook, which shows a balance of $1,018.25. The bank shows a balance of $210.20. The following checks have not cleared the bank: No. 85, $20.50; No. 87, $145.50; and No. 88, $215.10. Anna has a $20.00 service fee and a $24.00 NSF fee. The bank pays her $110.15 electric bill through automatic withdrawal. She also made a stop payment order with a fee of $20. A $1,015.00 deposit does not appear on the bank statement. Prepare Anna's bank reconciliation. 5. Consumers who used ATM's operated by banks paid an average of $2.86 per transaction. New Jersey banks were under the national average at $2.50 per