Chapter $4$

Financial Planning Exercise $6$

Checking account reconciliation

Use Worksheet $4\mathrm{.}1.$ Mateo Gonzalez has an interest$-$paying $($NOW$)$ checking account at the Second State Bank. His checkbook ledger lists the following checks:

Check Numbers Amount

$654$ $$206\mathrm{.}05$

$65855\mathrm{.}13$

$662103\mathrm{.}00$

$66899\mathrm{.}10$

$6706\mathrm{.}10$

$67150\mathrm{.}48$

$67224\mathrm{.}90$

$67332\mathrm{.}44$

$67444\mathrm{.}50$

$67530\mathrm{.}00$

$67630\mathrm{.}00$

$677111\mathrm{.}23$

$67838\mathrm{.}04$

$67997\mathrm{.}99$

$680486\mathrm{.}17$

$68143\mathrm{.}50$

$68275\mathrm{.}00$

$68398\mathrm{.}76$

Mateo also made the following withdrawals and deposits at an ATM near his home:

Date Amount Transaction

$11/1$ $$50\mathrm{.}00$ withdrawal

$11/2$ $$525\mathrm{.}60$ deposit

$11/6$ $$100\mathrm{.}00$ deposit

$11/14$ $$75\mathrm{.}00$ withdrawal

$11/21$ $$525\mathrm{.}46$ deposit

$11/24$ $$150\mathrm{.}00$ withdrawal

$11/27$ $$225\mathrm{.}00$ withdrawal

$11/30$ $$400\mathrm{.}24$ deposit

Mateo's checkbook ledger shows an ending balance of $$286\mathrm{.}54.$ He has just received his bank statement for the month of November. It shows an ending balance of $$622\mathrm{.}44$; it also shows that he earned interest for November of $$3\mathrm{.}42,$ had a check service charge of $$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 $4\mathrm{.}1$ to reconcile Mateo's 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$)$: Mateo Gonzalez

Type of Account: NOW Account $-$ First State Bank

$1.$ Ending balance shown on bank statement

$

Add up checks and withdrawals still outstanding:

Check Number or Date Amount

$

$

$

$

$

$

$

$

ATM $11-24$ $

ATM $11-27$ $

TOTAL $

$2.$ Deduct total checks$/$withdrawals still outstanding from bank balance $-$

$

Add up deposits still outstanding:

Date Amount

$11/21/15$ $

$11/30/15$ $

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$.$

fill in the blanks CHECKING ACCOUNT RECONCILIATION

For the Month of November, $2015$

Accountholder Name$($s$)$: Mateo Gonzalez

Type of Account: NOW Account $-$ First State Bank

$1.$Ending balance shown on bank statement

$

Add up checks and withdrawals still outstanding:

$2.$ Deduct total checks$/$withdrawals still outstanding from bank balance

Add up deposits still outstanding:

$\backslash$table$[[$Date$,$Amount$],[11/21/15,$$$,],[11/30/15,$$$,],[$TOTAL$,$$$,]]$

Add total deposits still outstanding to bank balance

A$.$ Adjusted Bank Balance

Ending balance shown in checkbook

Deduct any bank service charges for the period