1. Entry Task
The formula for finding the sale price of an item where p is price, s is sale price and d is discount %, is s= 𝑝(1−𝑑) 100
Solve this equation for P.
𝑃= 100𝑠 (1−𝑑)

2. 3-2 RECONCILE A BANK STATEMENT
Banking
6/11/2018
3-2 RECONCILE A BANK STATEMENT
OBJECTIVES
Reconcile a checking account with a bank statement by hand and by using a spreadsheet.
Chapter 1

3. Key Terms account number bank statement statement period
Banking
6/11/2018
Key Terms
account number
bank statement
statement period
starting balance
ending balance
outstanding deposits
outstanding checks
balancing
reconciling
Chapter 1

4. Why is it important to reconcile the check register monthly?
Banking
6/11/2018
How do checking account users make sure that their records are correct?
Why is it important to reconcile the check register monthly?
What problems could arise if you think you have more in your account than the bank knows you have?
Chapter 1

5. Banking
6/11/2018
Example 1
The next slide has a bank statement and check register for Michael Biak’s checking account. What steps are needed to reconcile Michael’s bank statement?
Chapter 1

6. Banking
6/11/2018
Chapter 1

7. Outstanding depsoits
Outstanding Checks $ $ $ $ $ $ $ $
Check register Balance $
Statement Ending Balance $
Revised steatement balance $
statement is not reconciled

8. CHECK YOUR UNDERSTANDING
Banking
6/11/2018
CHECK YOUR UNDERSTANDING
Name some reasons why a check may not have cleared during the monthly cycle and appear on the bank statement.
Chapter 1

9. Banking
6/11/2018
Example 2
Use algebraic formulas and statements to model the check register balancing process.
let:
A = statement balance
B = total deposits outstanding
C = total withdrawals outstanding
D = revised statement balance
R = register balance
D = A + B – C so that we can get D = R
Chapter 1

10. CHECK YOUR UNDERSTANDING
Banking
6/11/2018
CHECK YOUR UNDERSTANDING
Nancy has a balance of $1,078 in her check register. The balance on her bank account statement is $ Not reported on her bank statement are deposits of $575 and $250 and two checks for $195 and $ Is her check register balanced? Explain.
Yes
– = 1078
Her statement also says 1078 so they are reconciled.
Chapter 1

11. Banking
6/11/2018
EXAMPLE 3
Marina and Brian have a joint checking account. They have a balance of $3, in the check register. The balance on the bank statement is $3, Not reported on the statement are deposits of $2,000, $135.67, $254.77, and $ and four checks for $567.89, $23.83, $598.33, and $1,000. Reconcile the bank statement using a spreadsheet.
Outstanding depsoits
Outstanding Checks
$ ,000.00 $ $ $ $ $ $
$ ,000.00
$ ,579.20
$ ,190.05
Check register Balance
$ ,839.25
Statement Ending Balance
$ ,450.10
Revised steatement balance
$ ,839.25
statement is reconciled
Chapter 1

12. Homework
P. 127 #2,3,5,6,8,10