Scott and Angela Lamar are college students who opened their first joint checking account at the American Bank on September 14. 2015. They've just received their first bank statement for the period ending October 5, 2015. The statement and checkbook ledger are shown in the table on the next page.
Critical Thinking Questions
1. From this information, prepare a bank reconciliation for the Lamars as of October 5. 2015. using a form like the one in Worksheet 4.1.
2. Given your answer to Question 1. what, if any, adjustments will the Lamars need to make in their checkbook ledger? Comment on the procedures used to reconcile their checking account and their findings.
3. If the Lamars earned interest on their idle balances because the account is a money market deposit account. what impact would this have on the reconciliation process? Explain.

Transcribed Image Text:

SCOTT AND ANGELA LAMAR 2128 E. ARBOR ST PHOENIX, ARIZONA THE AMERICAN BANK STATEMENT PERIOD SEPT. 6-0CT. 5, 2015 Opening Balance Total Deposits for Period Total Checks/ Withdrawals for Period $473.96 Deposits (Credits) $360.00 97.00 Ending Balance 95.39 Balance S360.00 457.00 421.05 524.05 521.05 360.39 95.39 S 0.00 $569.25 Date Sept. 14 Sept. 15 Sept. 25$45.20 Oct. 1 Oct. 1 Oct. 4 Oct. 5 RT-Returned Check FC-Finance Charges Withdrawals (Debits) 9.25 103.00 3.00 BC 65.90 $49.76$45.00 265.00 DM Debit Memo BC-Bank Charges CM-Credit Memo Checkbook Ledger CheckDate Number 2015 CheckDeposit Account Details Sept. 14 Cash-gift from birthday Sept. 15 Scott's wages Sept. 24 Kroger Sept. 27Telephone bill Oct. 1 Oct 1 Univ. Bk. Sto-college books Oct. 1 Oct. 1 B. Hadley-apartment rent Oct 2 Anthem-health insurance Oct. 3 Kroger's groceries Oct. 4 Cash: gas, entertain., laundry Oct. 5 Angela's salary 3 AmountAmount Balance $360.00 $360.00 97.00 457.00 411.80 383.40 103.00486.40 420.50 403.75 138.75 121.50 71.74 26.74 450.00476.74 101 $45.20 102 28.40 Scott's wages 103 104 105 106 107 108 65.90 16.75 265.00 17.25 49.76 45.00