22-23 5.01 Bank Rec. Lesson

• Bank Statement

• Bank Statement Reconciliation

• Bank Service Charge

• Check Stub Recording Charges

• Outstanding Deposits

• Outstanding Checks

• Journalize Bank Charge

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New Terms

Steps to Reconcile a Bank Statement

Adjusted Checkbook Balance (Left Side)

1~Write Date

2~Record Checkbook balance

3~Subtract bank service charges

4~Write an adjusted checkbook balance

Adjusted Bank Balance (Right Side)

1~Write Date

2~Record ending bank statement balance

3~Add Outstanding Deposits

4~Subtotal

5~Subtract Outstanding Checks

6~Write adjusted bank balance

11~Compare adjusted balances (MUST EQUAL)

Key Point: ​Bank is correct but they still do not know about outstanding events!