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4.5 – Reconciling the Bank Statement

4.5 – Reconciling the Bank Statement. Vocabulary & Formula. reconcile (p. 178) To compare your check register with the bank statement of your checking account to make sure they agree. Adjusted = Statement – Outstanding Checks/ + Outstanding

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4.5 – Reconciling the Bank Statement

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  1. 4.5 – Reconciling the Bank Statement

  2. Vocabulary & Formula reconcile (p. 178) To compare your check register with the bank statement of your checking account to make sure they agree. Adjusted = Statement – Outstanding Checks/ + Outstanding Balance Balance Payments or Debits Deposits

  3. Example 1 Your statement balance is $598.67. You have an outstanding check for $125.44 and an outstanding debit of $235.42 that didn’t post yet. You also have an outstanding deposit of $231.98. What is your adjusted balance?

  4. Solution Adjusted = Statement – Outstanding Checks/ + Outstanding Balance Balance Payments or Debits Deposits Adjusted Balance = 598.67 – 125.44 – 235.42 + 231.98 $469.79

  5. Example 2 Fill in the missing amount. Then decide if the register and statement balances agree. Check Register Balance: $717.16 Interest: $1.20 Service Charge/Fees: $0 New Balance: Statement Balance: $854.07 Outstanding Checks: $197.46 Outstanding Deposits: $61.75 Adjusted Balance:

  6. Solution • Step 1: Find the new balance • 717.16 + 1.20 • $718.36 • Step 2: Find the adjusted balance • 854.07 – 197.46 + 61.75 • $718.36 • Step 3: Do these agree? • Yes

  7. Assignment • P. 179-181 1-14all

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