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:

Check Numbers	Amount
654	$206.05
658	55.50
662	103.00
668	99.12
670	6.19
671	50.44
672	24.90
673	32.50
674	44.50
675	30.00
676	30.00
677	111.23
678	38.04
679	97.99
680	486.21
681	43.50
682	75.17
683	98.73

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		$525.74		deposit
11/24		$150.00		withdrawal
11/27		$225.00		withdrawal
11/30		$400.30		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 $3.08, 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:

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.