Chapter 4 Financial Planning Exercise 6 Checking account reconciliation Use Worksheet 4.1. Carlos Perez has a NOW account at the First State Bank. His checkbook ledger lists the following checks: Amount Check Numbers 654 658 $206.05 55.00 103.00 98.57 6.13 50.01 24.90 32.43 44.50 30.00 30.00 111.23 38.04 97.99 486.19 43.50 75.21 98.22 Carlos also made the following withdrawals and deposits at an ATM near his home: Date Amount Transaction 11/1 $50.00 withdrawal 11/2 $525.60 deposit 11/6 $100.00 deposit 11/14 $75.00 withdrawal 11/21 $525.18 deposit 11/24 $150.00 withdrawal 11/27 $225.00 withdrawal 11/30 $400.65 deposit Carlos' checkbook ledger shows an ending balance of $286.54. He has just received his bank statement for the month of November. It shows an ending balance of $622.44; it also shows that he earned interest for November of $4.97, had a check service charge of $8 for the month, and had another $12 charge for a returned check. His bank statement indicates the following checks have cleared: 654, 662, 672, 674, 675, 676, 677, 678, 679, and 681. ATM withdrawals on 11/1 and 11/14 and deposits on 11/2 and 11/6 have cleared; no other checks or ATM activities are listed on his statement, so anything remaining should be treated as outstanding. Use a checking account reconciliation form like the one in Worksheet 4.1 to reconcile Carlos' checking account. Round your answers to the nearest cent. Enter all answers as positive values. Enter your answers in the given order of Check numbers. CHECKING ACCOUNT RECONCILIATION For the Month of November, 2015 Accountholder Name(s): Carlos Perez Type of Account: NOW Account - First State Bank 1. Ending balance shown on bank statement Add up checks and withdrawals still outstanding: Amount Check Number or Date ATM 11-24 $ ATM 11-27 TOTAL 2. Deduct total checks/withdrawals still outstanding from bank balance Add up deposits still outstanding: Amount Date 11/21/15 $ 11/30/15 TOTAL $ 3. Add total deposits still outstanding to bank balance A. Adjusted Bank Balance 4. Ending balance shown in checkbook 5. Deduct any bank service charges for the period 6. Add interest earned for the period B. New Checkbook Balance Note: Your account is reconciled when line A equals line B