Given a bank statement showing a balance of $4250, with deposits in transit totaling $1200, and outstanding checks of $300, what should the check register balance be?

To determine the correct check register balance, it is essential to understand the components involved and how they interact with the bank statement balance.

Start with the bank statement showing a balance of $4,250. This figure does not account for some transactions that have been recorded in the company’s check register but have yet to be processed by the bank. Specifically, there are deposits in transit and outstanding checks that need to be considered.

Deposits in transit refer to amounts that have been accounted for in the check register but are not yet reflected in the bank's balance. In this case, there are deposits in transit totaling $1,200. Since these amounts will increase the bank's balance once they are cleared, you add this to the bank statement balance.

On the other hand, outstanding checks are those written by the company that have not yet cleared the bank. There is an outstanding check of $300, which should be subtracted from the bank's balance as this reduces the amount available in the check register.

Using this information, the calculation for the check register balance would look like this:

1. Start with the bank statement balance: $4,250

2. Add the deposits in transit: $4,250 + $1,200 = $5