1. Bank Statements pp. 175-177 4-4 SECTION

2. Click to edit Master text styles Second level Third level Fourth level Fifth level 2 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 4-4, Slide 2 of 15 4-4 Section Objective Calculate: the present balance on a checking account bank statement

3. Click to edit Master text styles Second level Third level Fourth level Fifth level 3 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 4-4, Slide 3 of 15 4-4 bank statement (p. 175) A statement from your bank that lists all the checks that have cleared, including, automatic transfers, ATM transactions, and deposits. Key Words to Know

4. Click to edit Master text styles Second level Third level Fourth level Fifth level 4 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 4-4, Slide 4 of 15 4-4 service charge (p. 175) A fee charged for services rendered by your bank. Key Words to Know

5. Click to edit Master text styles Second level Third level Fourth level Fifth level 5 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 4-4, Slide 5 of 15 4-4 Present = Previous + Deposits – Withdrawals – Service + Interest Balance Balance Charges Formula

6. Click to edit Master text styles Second level Third level Fourth level Fifth level 6 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 4-4, Slide 6 of 15 4-4 What are the penalties for being overdrawn? Fleet Footed Finances p. 175

7. Click to edit Master text styles Second level Third level Fourth level Fifth level 7 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 4-4, Slide 7 of 15 4-4 Your bank statement shows a previous balance of $944.50. You make deposits of $755.50 and $210.40, and write checks for $355.50 and $125.50. You have a $3.00 service charge and earn $0.25 in interest. What is your present balance? Example 1

8. Click to edit Master text styles Second level Third level Fourth level Fifth level 8 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 4-4, Slide 8 of 15 4-4 Step: Calculate the balance in the account. Previous + Deposits – Withdrawals – Service + Interest Balance Charges $944.50 + ($755.50 + $210.40) – ($355.50 + $125.50) – $3.00 + $0.25 $944.50 + $965.90 – $481.00 – $3.00 – $0.25 = $1,426.65 Example 1 Answer

9. Click to edit Master text styles Second level Third level Fourth level Fifth level 9 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 4-4, Slide 9 of 15 4-4 Margaret 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. Example 2

10. Click to edit Master text styles Second level Third level Fourth level Fifth level 10 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 4-4, Slide 10 of 15 4-4 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 Present = Previous + Deposits – Withdrawals – Service + Interest Balance Balance Charges Present Balance = $313.54 + $913.40 – $554.54 = $672.40 Example 2 Answer

11. Click to edit Master text styles Second level Third level Fourth level Fifth level 11 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 4-4, Slide 11 of 15 4-4 Vince Murray’s bank statement for May lists deposits of $14.75, $99.22, and $531.18. What are his total deposits for May? Practice 1

12. Click to edit Master text styles Second level Third level Fourth level Fifth level 12 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 4-4, Slide 12 of 15 4-4 $645.15 Practice 1 Answer

13. Click to edit Master text styles Second level Third level Fourth level Fifth level 13 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 4-4, Slide 13 of 15 4-4 Gina Valerio’s bank statement for April lists withdrawals of $58.17, $19.95, $756.60, $93.28, and $106.41. What are her total withdrawals for the month? Practice 2

14. Click to edit Master text styles Second level Third level Fourth level Fifth level 14 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 4-4, Slide 14 of 15 4-4 $1,034.41 Practice 2 Answer

15. Bank Statements 4-4 END OF SECTION