Objective: analyze the checking
account transactions made in our
banking simulation
January 1- 31st
Check Register January
Date No.
Checkbook Entry
1/3
D
Deposit paycheck + $50 Cash
1/8
101
National Electric Company
35.24
681.96
1/9
102
Reader’s Service, INC
24.00
657.96
1/15 103
Ticket Forum
40
617.96
1/15 104
Verizon
41.80
576.16
1/19 105
Hilltop Garage
120.24
455.92
1/22 106
Seasons Unlimited
33.93
421.99
1/28 107
KMT Insurance
314.12
107.87
1/31 D
Deposit paycheck – $60 cash
1/31 108
Colonial Apartments-rent
1/31
Debit (-)
Credit (+)
Balance
717.20
717.20
692.37
450
800.24
350.24
Reconciliation
• Definition: to have two items agree
• Review handout on reconciliation basics
• Definition: adjusted balance- New balance
for checkbook and bank statement after the
reconciliation process has been completed.
What do we do with the following
exercise?
• Student with cards move to the front of the
room.
Reconciliation Example
• Reconcile the following bank statement and
checkbook register. You must have your
adjusted balance completed to receive full
credit. Note: the numbers on both sides must
equal.
• Bank Statement Ending Balance: $5,000
• Check Register Ending Balance: $5,800
• Reconcile the differences—use tick marks!
Continued
• The following items were not found in both the
checkbook register and the bank statement.
• Service Fees $4.00
• Interest Earned $ 12.00
• Check Fees $8.00
• Outstanding Deposits $850.00
• Outstanding Checks $ 85.00
• Checkbook error (forgot to record in register a
check for $35.00)
Final Assessment
• Test Chapter Four– Wednesday,
• Key terms from notes and handouts,
reconciliation, and checking account
simulation
Closure
• What happens when the adjusted balances
don’t agree?
• What should you do first?
• How often does the bank make mistakes?
Reconciliation
Bank Statement -$5,000
• + 850.00 (OD)
• - 85.00 (OC)
Checkbook Balance- $5,800
• - 4.00 (SF)
• +12.00 (I)
• - 8.00 (CF)
• -35.00 (E)
• = 5765.00
• = 5765.00
(adjusted balance)
(adjusted balance)
Practice Problem 2
Bank $6000
• Adjusted Balance= 6765
Checkbook $6,800
• Adjusted Balance = 6765