1. 3.4 CHECK REGISTER RECONCILIATION
MRS. RUIZ-EMMONS
BUSINESS MATH FALL 2017

2. GOALS RECONCILE A BANK STATEMENT
RECONCILE AND CORRECT A CHECK REGISTER

3. RECONCILE THE BANK STATEMENT
IT IS WHAT BANKS USE TO KEEP TRACK OF CHECKING ACCOUNT TRANSACTIONS AND GENERATE A MONTHLY REPORT.
A SERVICE CHARGE IS A DEDUCTION MADE BY THE BANK FOR HANDLING THE CHECKING ACCOUNT.

4. TERMS
Interested earned is money paid to customers for the use of their money.
OUSTANDING CHECKS- THIS MEANS THAT THE CHECKS HAVE NOT YET BEEN RECEIVED OR PAID BY THE BANK.
A CANCELLED CHECK IS A CHECK THAT THE BANK HAS PAID AND THEN MARKED SO IT CAN’T BE USED AGAIN.

5. RECONCILING A BANK STATEMENT
Step 1: Obtain the current balance from your bank statement.
Step 2: Add any deposits that you have recorded in your check register but that are not on this statement.
Step 3: Subtract any outstanding checks (checks you have written but that have not yet cleared the banking system).
Step 4: Compare the result with the current balance in your check register.

6. Note: The balance in your check register should be adjusted to include: (a) deductions for service fees or other charges; (b) additions for direct deposits and interest earned.

7. CHECK YOUR UNDERSTANDING pg.101
A. MARIA’S GREELEY’S BANK STATEMENT SHOWED A CLOSING BALANCE OF $1,383.53, NO OUTSTANDING DEPOSITS , AND TWO OUTSTANDING CHECKS FOR $ AND $ RECONCILE HER BANK STATEMENT.

8. SOLUTION $1383.53 CLOSING BALANCE -$129.45 OUTSTANDING CHECK
= $1,166.69

9. B. XAVIER ALLASANDRO HAD A CLOSING BALANCE OF $793
B. XAVIER ALLASANDRO HAD A CLOSING BALANCE OF $ IN HIS BANK STATEMENT. THE OUTSTANDING ITEMS WERE: A DEPOSIT OF $ CHECK 278 FOR $ AND CHECK 280 FOR $ RECONCILE HIS BANK STATEMENT.

10. $ CLOSING BALANCE
DEPOSIT
-$ CHECK #278
-$ CHECK #280
= $898.03