Question: It was the end of a very long first month in her sole proprietorship, and Kara Noble was exhausted. Between moving into a new apartment and teaching dance classes five nights a week, there was not much downtime. Consequently, the mail had started to pile up. After sorting through a few bills and way too much junk mail, Kara spotted her first bank statement from U.S. Bank. The format was different from what she was used to, and she was startled to see the ending balance of only $506.18, less than the balance she thought she had. Kara went to find her business checkbook, which along with the bank statement is summarized below:
1. What steps should Kara take to reconcile her bank statement? (Hint: they are listed in your text.)
2. Reconcile Kara's register for Expressions Dance with the bank statement following the steps you provided in your answer to question 1.
3. The last entry in Kara's Expressions Dance checkbook register is for check 1008 written to Besberg Realty for her personal apartment rent. Is it legal to write checks for personal expenses out of a business account? Even if it is legal, is it a good ideas?