1. SECTION
4-4
Bank Statements pp

2. Key Words to Know bank statement (p. 175)
A statement from your bank that lists all the checks that have cleared, including, automatic transfers, ATM transactions, and deposits.

3. Key Words to Know service charge (p. 175)
A fee charged for services rendered by your bank.

4. Formula
Present = Previous + Deposits – Withdrawals – Service + Interest
Balance Balance Charges

5. Example 1
Your bank statement shows a previous balance of $ You make deposits of $ and $210.40, and write checks for $ and $ You have a $3.00 service charge and earn $0.25 in interest.
What is your present balance?

6. Example 1 Answer Step: Calculate the balance in the account.
Previous + Deposits – Withdrawals – Service + Interest
Balance Charges
$ ($ $210.40) – ($ $125.50) – $ $0.25
$ $ – $ – $3.00 – $0.25 = $1,426.65

7. Example 2
Marissa Miller received her bank statement and cancelled checks for March. She checks her statement, shown on page 176 of your textbook.
Verify her present balance.

8. Example 2 Answer Step: Calculate the balance in the account.
Total Deposits: $ $ = $913.40
Total Withdrawals: $ $ $ $ $42.98 = $554.54
Present = Previous + Deposits – Withdrawals – Service + Interest
Balance Balance Charges
Present Balance = $ $ – $ = $672.40

9. : #1-9
END OF SECTION
4-4
Bank Statements