2. The Bank Statement A Bank Statement is an itemized record of all the transactions in a depositor’s account over a given period of time, usually one month. 1)Beginning Balance 1 2) All Deposits Made 2 3) All Checks Paid 3 4) Other Deductions 4 5) Ending Balance 5

3. Bank Statement Balance vs Checkbook Balance The balance on the bank statement usually does not match the balance that is in the checkbook. Since the checkbook has a perpetual balance, there are three reasons why the statement balance would not match the checkbook balance. Outstanding Checks Outstanding Deposits Bank Charges Checks written by the company, but not yet received by the bank. Deposits made by the company, but not yet received by the bank. Fees charged by the bank for maintaining the account.

4. Recording Bank Service Charges NOV 1 G3 8 21,117 NOV 1 G3 8 8 Less service charges ( 8 ) 21,117 510 101

5. Reconciling the Bank Statement

6. Problem 11-5 Recording Service Charges Less service charges ( 10 ) 950 31 G4 10 950 1 G3 10 615 512 101

7. Prob 11-5 Reconciling the Bank Statement