1. Objective: analyze the checking account transactions made in our banking simulation January 1- 31st

2. Check Register January DateNo.Checkbook EntryDebit (-)Credit (+)Balance 1/3DDeposit paycheck + $50 Cash717.20 1/8101National Electric Company35.24681.96 1/9102Readers Service, INC24.00657.96 1/15103Ticket Forum40617.96 1/15104Verizon41.80576.16 1/19105Hilltop Garage120.24455.92 1/22106Seasons Unlimited33.93421.99 1/28107KMT Insurance314.12107.87 1/31DDeposit paycheck – $60 cash692.37800.24 1/31108Colonial Apartments-rent450350.24 1/31

3. Reconciliation Definition: to have two items agree Review handout on reconciliation basics Definition: adjusted balance- New balance for checkbook and bank statement after the reconciliation process has been completed.

4. What do we do with the following exercise? Student with cards move to the front of the room.

5. Reconciliation Example Reconcile the following bank statement and checkbook register. You must have your adjusted balance completed to receive full credit. Note: the numbers on both sides must equal. Bank Statement Ending Balance: $5,000 Check Register Ending Balance: $5,800 Reconcile the differencesuse tick marks!

6. Continued The following items were not found in both the checkbook register and the bank statement. Service Fees $4.00 Interest Earned $ 12.00 Check Fees $8.00 Outstanding Deposits $850.00 Outstanding Checks $ 85.00 Checkbook error (forgot to record in register a check for $35.00)

8. Final Assessment Test Chapter Four– Wednesday, Key terms from notes and handouts, reconciliation, and checking account simulation

9. Closure What happens when the adjusted balances dont agree? What should you do first? How often does the bank make mistakes?

10. Reconciliation Bank Statement -- $5,000 + 850.00 (OD) - 85.00 (OC) = 5765.00 (adjusted balance) Checkbook Balance- - $5,800 - 4.00 (SF) +12.00 (I) - 8.00 (CF) -35.00 (E) = 5765.00 (adjusted balance)

11. Practice Problem 2 Bank $6000 Adjusted Balance= 6765 Checkbook $6,800 Adjusted Balance = 6765