3-2 RECONCILE A BANK STATEMENT OBJECTIVES Reconcile a checking account with a bank statement by hand and by using a spreadsheet. Slide 1 Financial Algebra © 2011 Cengage Learning.
Download ReportTranscript 3-2 RECONCILE A BANK STATEMENT OBJECTIVES Reconcile a checking account with a bank statement by hand and by using a spreadsheet. Slide 1 Financial Algebra © 2011 Cengage Learning.
3-2 RECONCILE A BANK STATEMENT
OBJECTIVES
Reconcile a checking account with a bank statement by hand and by using a spreadsheet.
Slide 1 Financial Algebra © 2011 Cengage Learning. All Rights Reserved.
Slide 2
Key Terms
account number bank statement statement period starting balance ending balance outstanding deposits outstanding checks balancing reconciling Financial Algebra © 2011 Cengage Learning. All Rights Reserved.
Slide 3
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?
Financial Algebra © 2011 Cengage Learning. All Rights Reserved.
Slide 4 Financial Algebra © 2011 Cengage Learning. All Rights Reserved.
Slide 5
CHECK YOUR UNDERSTANDING
Name some reasons why a check may not have cleared during the monthly cycle and appear on the bank statement.
Financial Algebra © 2011 Cengage Learning. All Rights Reserved.
Example 2
Use algebraic formulas and statements to model the check register balancing process. Slide 6 Financial Algebra © 2011 Cengage Learning. All Rights Reserved.
Slide 7
CHECK YOUR UNDERSTANDING
Nancy has a balance of $1,078 in her check register. The balance on her bank account statement is $885.84. Not reported on her bank statement are deposits of $575 and $250 and two checks for $195 and $437.84. Is her check register balanced? Explain.
Financial Algebra © 2011 Cengage Learning. All Rights Reserved.