1. CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 5-2 Bank Reconciliation

2. CENTURY 21 ACCOUNTING © Thomson/South-Western 2 LESSON 5-2 BANK STATEMENT page 124 Bank Statement: A report of deposits, withdrawals, and bank balances set to a depositor by a bank

3. CENTURY 21 ACCOUNTING © Thomson/South-Western 3 LESSON 5-2 5.Bank Statement Balance BANK STATEMENT RECONCILIATION 1 2 3 4 5 6 7 8 9 9.Adjusted Bank Balance page 125 2.Check Stub Balance 10.Compare Adjusted Balances 1.Date 3.Service Charge 4.Adjusted Check Stub Balance 6.Outstanding Deposits 7.Subtotal 8.Outstanding Checks 10

4. CENTURY 21 ACCOUNTING © Thomson/South-Western 4 LESSON 5-2 1.Write Service Charge $8.00 on the check stub under the heading “Other.” RECORDING A BANK SERVICE CHARGE ON A CHECK STUB page 126 12 3 2.Write the amount of the service charge in the amount column. 3.Calculate and record the new subtotal on the Subtotal line.

5. CENTURY 21 ACCOUNTING © Thomson/South-Western 5 LESSON 5-2 1.Write the date. JOURNALIZING A BANK SERVICE CHARGE page 127 14 August 31. Received bank statement showing August bank service charge, $8.00. Memorandum No. 3. 2.Write the title of the account debited. Record the debit amount. 3.Write the title of the account credited. Record the credit amount. 4.Write the source document number in the Doc. No. column. 2 3

6. CENTURY 21 ACCOUNTING © Thomson/South-Western 6 LESSON 5-2 TERM REVIEW bank statement page 128

7. CENTURY 21 ACCOUNTING © Thomson/South-Western Quick Review Why have a checking account? Deposits open a checking account – signature required. Check Stubs – Record what’s happening in checking account (deposits, payments, bank charges) Steps to complete a check & parts of a check 3 Types of Endorsements Why complete a bank reconciliation? What figures are included on a bank reconciliation? 7 LESSON 5-2