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To determine the true balance in your checking account, we will perform a bank reconciliation by adjusting the bank statement balance with the outstanding checks, deposits in transit, and other relevant items.

Here's how we can calculate it:

### Step 1: Start with the balance on the bank statement.
- **Bank statement balance** = $472

### Step 2: Subtract the total of outstanding checks.
- **Outstanding checks** = $187
- New balance = $472 - $187 = **$285**

### Step 3: Add deposits in transit.
- **Deposits in transit** = $60
- New balance = $285 + $60 = **$345**

### Step 4: Adjust the checkbook balance by accounting for service charges and interest earned.
- **Checkbook balance** = $356
- **Service charge and fees** = $15
- **Interest earned** = $4
- Adjusted checkbook balance = $356 - $15 + $4 = **$345**

So, the **true balance** in your checking account is **$345**.

Would you like further details or explanations on any of these steps? Here are some related questions that can deepen your understanding:

1. How do deposits in transit affect the balance in bank reconciliation?
2. Why do we subtract outstanding checks from the bank statement balance?
3. What are common causes of discrepancies between checkbook balances and bank statements?
4. How are service charges typically applied to checking accounts?
5. What is the importance of interest earned in bank reconciliations?

**Tip:** Regularly performing bank reconciliations can help you catch any errors or unauthorized transactions early, ensuring your records are accurate.

Based on the following information, determine the true balance in your checking account:
Balance in checkbook: $356
Interest earned: $4
Balance on bank statement: $472
Service charge and fees: $15
Total of outstanding checks: $187
Deposits in transit: $60

Learn how to determine the true balance in your checking account using bank reconciliation. This problem involves adjusting the bank statement balance by accounting for outstanding checks, deposits in transit, service charges, and interest earned. Suitable for students in Grades 6-8.

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