6. Checking account reconciliation How do you balance your checkbook? Your roommate, Kyoko, has never before had a checking account, but she finally opened one last month. Kyoko is standing in the doorv kitchen with the check register in one hand and the recently arrived bank statement in the other. Admitting that she doesn't know what Kyoko asks for your help in reconciling, or balancing, her checkbook. Being both a good friend and a student of personal finance, you've agreed to walk Kyoko through the process. KYOKO: Thanks for helping me with this bank statement thing. So, where do we start? YOU: Let's start with some preliminary questions. I'll ask and you answer, and we'll agree on some fundamentals about reconciling t accounts. So, why is it a good idea to reconcile your bank account or balance your checkbook? KYOKO: According to my personal finance book, reconciling my account will help me spot potential errors in the bank statement or records, and it will verify my account's actual balance as of the date on the bank statement YOU: You're absolutely correct! Now, according to the experts, how should ongoing or between-statement deposits and withdrawals nciliation be performed, and how f reconciliation date KYOKO: That's an easy one. I remember reading that I should reconcile my bank account deposit and withdrawal transactions online every couple of days. quarterly ' but I should verify my or YOU: That's right! Now that you've got the fundamentals under control, let's go through th monthly cess of balancing the checkbo Now, with Kyoko's latest bank statement and her check register or ledger in hand, you can examine the documents. Use the grey slider along the right-hand side of each of the following boxes to see Kyoko's bank statement and check register (account Fourth State Bank of San Francisco, CA Statement of Account Kyoko Smythe June 20XX 550 Angel Street San Francisco, CA Account 348596 Date 6-01 Description Previous balance Subtractions Additions Balance 1,446.50