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

CENTURY 21 ACCOUNTING © Thomson/South-Western Lesson Essential Questions How do you reconcile a checking account? How do you record a bank service charge on a check stub? 2 LESSON 5-2

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

CENTURY 21 ACCOUNTING © Thomson/South-Western 4 LESSON Bank Statement Balance BANK STATEMENT RECONCILIATION Adjusted Bank Balance page 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

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

CENTURY 21 ACCOUNTING © Thomson/South-Western 6 LESSON Write the date. JOURNALIZING A BANK SERVICE CHARGE page August 31. Received bank statement showing August bank service charge, $8.00. Memorandum No 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

CENTURY 21 ACCOUNTING © Thomson/South-Western 7 LESSON 5-2 TERM REVIEW bank statement page 128