1. Reconcile a Bank Statement
Unit 4.2
Reconcile a Bank Statement

2. Unit 3-2 RECONCILE A BANK STATEMENT
Banking
11/27/2018
OBJECTIVES
Reconcile a checking account with a bank statement by hand and by using a spreadsheet.
Unit 3-2 RECONCILE A BANK STATEMENT
Chapter 1

3. Key Terms account number bank statement statement period
starting balance
ending balance
outstanding deposits
outstanding checks
balancing
reconciling

4. Account #
Bank Statement
Starting Balance
Ending Balance
Appears on statement & all transactions
Monthly report of all check account transactions
Money at beginning of statement period
Money at end of statement period

5. Outstanding Deposits
Outstanding Checks
Balancing/Reconciling
Deposits not in monthly statement
Checks not in monthly statement
Verifying no mistakes were made by bank

6. How do checking account users make sure that their records are correct?
Why is it important to reconcile the check register monthly?
What problems could arise if you think you have more in your account than the bank knows you have?

7. Example 1
The next slide has a bank statement and check register for Michael Biak’s checking account. What steps are needed to reconcile Michael’s bank statement?

9. CHECK YOUR UNDERSTANDING
Name some reasons why a check may not have cleared during the monthly cycle and appear on the bank statement.

10. Example 2
Use algebraic formulas and statements to model the check register balancing process.

11. CHECK YOUR UNDERSTANDING
Nancy has a balance of $1,078 in her check register. The balance on her bank account statement is $ Not reported on her bank statement are deposits of $575 and $250 and two checks for $195 and $ Is her check register balanced? Explain.
CHECK YOUR UNDERSTANDING

12. EXAMPLE 3
Marina and Brian have a joint checking account. They have a balance of $3, in the check register. The balance on the bank statement is $3, Not reported on the statement are deposits of $2,000, $135.67, $254.77, and $ and four checks for $567.89, $23.83, $598.33, and $1,000. Reconcile the bank statement using a spreadsheet.

13. CHECK YOUR UNDERSTANDING
Write a formula to calculate the sum of the outstanding checks.