1. Chapter 10.1 Bank Reconciliation Heading Write the heading

2. Chapter 10.1 Bank Reconciliation Statement balance Enter the ending balance from the bank statement

3. Chapter 10.1 Bank Reconciliation Outstanding cheques Determine, record, and total the outstanding cheques

4. Chapter 10.1 Bank Reconciliation Total OS cheques When cashed, the outstanding cheques will lower the bank balance

5. Chapter 10.1 Bank Reconciliation Late deposit Add a late deposit, if one exists

6. Chapter 10.1 Bank Reconciliation Adjusted balance Compute the adjusted amount of the bank statement’s balance

7. Chapter 10.1 Bank Reconciliation Ledger account Record the balance of cash from the company’s ledger account

8. Chapter 10.1 Bank Reconciliation Debit memos Deduct any “debit memos” discovered on the bank statement

9. Chapter 10.1 Bank Reconciliation Total Calculate the new cash balance

10. Chapter 10.1 Bank Reconciliation Agreement Often, these two amounts will agree. If not, look for credit memos and errors.

11. Chapter 10.1 Bank Reconciliation Error In this case, a journalizing error was discovered. It had the effect of increasing the ledger balance of cash

12. Chapter 10.1 Bank Reconciliation Adjusted balance Calculate the adjusted ledger account balance of cash

13. Chapter 10.1 Bank Reconciliation Deficiency Making changes on this statement will not affect the company’s ledger account balance of $1121.76

14. Chapter 10.1 Bank Reconciliation Journal entry Journal entries are needed to change the company’s ledger account balance from $1,121.76 to $1,118.36.