Evaluating Reported Bank Balances Bill just received his monthly bank statement for April and was irritated when he saw he had been charged $7 for a monthly bank service charge. The charge is only supposed to be made if his bank balance is less than $400, and Bill shows a balance of approximately $500. After comparing the bank statement and the amounts recorded in his checkbook, Bill found the following differences:

a. Prepare a bank reconciliation for Bill’s checking account and determine the proper balance for his account.

b. Is it safe for Bill to write a check for $113.00 to purchase a new pair of air pump basketball shoes? Explain.

c. Was the bank charge correct, or should Bill object?
PART II

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Balance per Bill's checkbook Balance per bank statement Checks written by Bill that did not yet clear bank # 332 to Midland Muffler Repair # 338 to Armstrong Apartments # 349 to Joe's Bar & Grill Bank service charge Automatic deduction for gas and electric bill $500.35 355.30 165.22 420.03 34.10 7.00 144.10