Orlando has a bank statement balance of $414.25 and $5.90 service charge. His check register shows $374.16 and he has two outstanding checks of $26.54 and $21.78. After adjustments for the service charge, what is the checkbook balance?

After adjustment for the service charge the checkbook balance is $368.26

Step-by-step explanation:

To solve the question, we recognize that this is a word problem, hence

In order to ensure that the checkbook and the bank statements are balanced, the latest bank statement is used as a reference to subtract or add transactions present in the checkbook but yet to be included in the bank statement thus, the sum total arrived at should equate to the current checkbook balance

Hence in this case Orlando Bank statement shows a service charge of $5.90 and a balance of $414.25 which is the amount owed Orlando

However Orlando has two outstanding checks which must be subtracted from the current bank statement balance to balance with the checkbook

Therefore to subtract the two outstanding checks we have

$414.25 - ($26.54 + $21.78) = $365.93

This is the amount that should be left on Orlando's  checkbook

Hence subtrcting the service charge from the checkbook balance we have

$374.16 - $5.9 = $368.26 which is more than the eventual bank balance will be when the two checks are cleared

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step-by-step explanation:

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step-by-step explanation: