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

2. CENTURY 21 ACCOUNTING © Thomson/South-Western 2 LESSON 5-2 TERM REVIEW bank statement – a report of deposits, withdrawals, and bank balances sent to a depositer by a bank. bank reconciliation – the process of balancing bank statement and checkbook page 128

3. CENTURY 21 ACCOUNTING © Thomson/South-Western 3 LESSON 5-2 BANK STATEMENT page 124

4. CENTURY 21 ACCOUNTING © Thomson/South-Western 4 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

5. CENTURY 21 ACCOUNTING © Thomson/South-Western 5 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. Def. – a fee a bank charges for maintaining a checking account.

6. CENTURY 21 ACCOUNTING © Thomson/South-Western 6 LESSON 5-2 JOURNALIZING A BANK SERVICE CHARGE 1.Write the date. page 127 13 4 August 31. Received bank statement showing August bank service charge, $8.00. Memorandum No. 3. 2 2.Write the title of the account to be debited. Record the amount debited. 3.Record the amount credited. 4.Write the source document number.