Broker Smith's escrow account shows a book balance of $47,500. The bank statement shows $49,000. There are outstanding checks totaling $3,100 and deposits in transit of $1,600. What should Smith do?
Correct Answer
B) The account reconciles correctly; no action needed
Adjusted bank balance = $49,000 + $1,600 deposits in transit - $3,100 outstanding checks = $47,500, which matches the book balance exactly, so the account reconciles.
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Related Topics & Key Terms
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Related Concepts
Brokers in Florida have strict responsibilities for managing escrow accounts, including monthly reconciliation and proper handling of trust funds.
FREC has the authority to impose fines and other disciplinary actions on licensees who violate real estate laws and rules.
A group boycott is an illegal antitrust practice in which two or more competing real estate businesses agree to refuse to work with a specific person, company, or entity in order to harm that party's ability to compete.
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