SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 4-5, Slide 1 of Reconciling the Bank Statement pp SECTION

Copyright © Glencoe/McGraw-Hill MBA, Section 4-5, Slide 2 of reconcile (p. 178) To compare your check register with the bank statement of your checking account to make sure they agree. Key Words to Know

SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 4-5, Slide 3 of Adjusted = Statement – Outstanding Checks/ + Outstanding Balance Balance Payments or Debits Deposits Formula

SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 4-5, Slide 4 of Your statement balance is $ You have an outstanding check for $ and an outstanding debit of $ that didn’t post yet. You also have an outstanding deposit of $ What is your adjusted balance? Example 1

SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 4-5, Slide 5 of Step: Calculate the adjusted balance. Statement - Outstanding Checks/ + Outstanding Balance Payments or Debits Deposits $ – ($ $235.42) + $ $ – $ $ = $ Example 1 Answer

SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 4-5, Slide 6 of Chris Miller’s check register balance is $2, He compares his statement and check register. For each check and deposit listed on his statement, he places a check mark next to the information in his register. He notes that the bank paid him $0.86 in interest. Example 2

SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 4-5, Slide 7 of Miller finds these outstanding checks and deposits. Check #525$ Check #527$ Deposit$ How does Miller reconcile his statement? Example 2 (cont.)

SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 4-5, Slide 8 of Step: Reconcile the balance. Miller uses the reconciliation form on the back of his statement to reconcile his account. Example 2 Answer

SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 4-5, Slide 9 of Figure 4.11

SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 4-5, Slide 10 of Find the adjusted balance. Statement Balance: $1, Outstanding Checks: $ Outstanding Deposits: $ Practice 1

SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 4-5, Slide 11 of $1, Practice 1 Answer

SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 4-5, Slide 12 of Fill in the missing amount. Then determine whether the register and statement balances agree. Check Register Balance: $ Interest: $1.20 Service Charge/Fees: $0 New Balance: Practice 2

SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 4-5, Slide 13 of Statement Balance: $ Outstanding Checks: $ Outstanding Deposits: $61.75 Adjusted Balance: Do the register and statement balances agree? Practice 2 (cont.)

SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 4-5, Slide 14 of Check Register Balance: $ Interest: $1.20 Service Charge/Fees: $0 New Balance: $ Practice 2 Answer

SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 4-5, Slide 15 of Statement Balance $ Outstanding Checks $ Outstanding Deposits $61.75 Adjusted Balance: $ Do the register and statement balances agree? Yes Practice 2 Answer (cont.)

SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 4-5, Slide 16 of Reconciling the Bank Statement 4-5 END OF SECTION : 3-8