1. Chapter 5, Section 2 Bank Reconciliation
Cash Control Systems
Chapter 5, Section 2
Bank Reconciliation

2. Bank Statement
A report of deposits, withdrawals, and bank balances sent to a depositor by a bank

3. Bank’s vs. Depositor’s Records
May differ for several reasons
Service charge
Outstanding deposits
Outstanding checks
Math or recording errors
Important to complete a bank reconciliation

5. Bank Statement Reconciliation
1. Date 1
2. Check Stub Balance 2 5
3. Service Charge
4. Adjusted Check Stub Balance 6 3 7
5. Bank Statement Balance
6. Outstanding Deposits 8 4 9
7. Subtotal
8. Outstanding Checks 10
9. Adjusted Bank Balance
10. Compare Adjusted Balances

6. Recording a Bank Service Charge on a Check Stub
1. Write Service Charge $8.00 on the check stub under the heading “Other.”
2. Write the amount of the service charge in the amount column.
3. Calculate and record the new subtotal on the Subtotal line. 1 2 3

7. Journalizing a Bank Service Charge
In order for the Cash account to be updated, the service charge must also be recorded in the journal.
Debit Miscellaneous Expense
Credit Cash
Source Document is a memorandum

8. Assignment Work Together 5-2 (Textbook pg. 128) Log in to Aplia.com
Application 5-2 (Textbook pg. 140)
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