Continuing Case 14. Checking Account Reconciliation
Jamie Lee Jackson, age 26, is in her last semester of college and is anxiously waiting for graduation day that is just around the corner! She still works part-time as a bakery clerk, has been sticking to her budget the past two years, and is on track to accumulating enough money for the $11,500 down payment she needs to open her cupcake caf within the next two years.
Jamie Lee is still single, shares a small apartment with a friend, and continues to split all of the associated living expenses, such as rent and utilities, but unfortunately, through a turn of events, has had to seriously consider a place of her own.
One evening, after returning to the apartment after a long shift at the bakery, Jamie learned that her roommate had a couple of friends over earlier in the evening. As Jamie went to her room, she noticed that her top desk drawer had been left open and her Debit/ATM card, as well as her checkbook and Social Security card, were missing. She immediately contacted the authorities, and the police instructed her to notify her financial institution immediately. But it was late Saturday night, and Jamie thought she had to now wait until Monday morning. Unfortunately, within no time, Jamie found that her checking account had been emptied!
Jamie Lees luck worsened, as she had paid many of her monthly bills late last week. Her automobile insurance, two utility bills, and a layaway payment had all been paid for by check. Her bank almost immediately began sending overdraft alerts through her smart phone for the emptied checking account.
Determine the balance in Jamie Lees checkbook register below. Use this total along with the information from Jamie Lees monthly bank statement to reconcile her checkbook register with her bank statement. Each answer must have a value for the assignment to be complete. Enter "0" for any unused categories.
| Bank accounts: | |
| Checking account (before theft) | $3,050 |
| Savings account | $8,900 |
| Emergency fund savings account | $5,900 |
| 401(k) balance | $450 |
Page 1 of BANK STATEMENT: Link Trust Bank P.O. Box 0000000 Any City, US 12345 Page 1 of 1 Acct. ending xxx 4560 09/15/2017 Link Trust Bank Jamie Lee Jackson 126 West Street, Apt. 3A Somewhere, US 23456 Account Account Type Summary CHECKING Account Number XXXXXXXXXXX4560 Statement Period 08/16/2017 - 09/15/2017 Description Amount Average Balance $1,378.33 Number of days in Statement Period 31 Description Beginning Balance Deposits/Credits Checks Withdrawals/Debits Ending Balance Amount $1,292.09 $1,950.62 $ 591.12 $ 153.28 $2,498.31 Deposits/ Date Credits 08/18 08/25 09/01 09/08 09/15 Amount 390.12 390.13 390.12 390.13 390.12 Description DEPOSIT - Electronic Credit/Great Foods, Inc. DEPOSIT - Electronic Credit/Great Foods, Inc. DEPOSIT - Electronic Credit/Great Foods, Inc. DEPOSIT - Electronic Credit/Great Foods, Inc. DEPOSIT - Electronic Credit/Great Foods, Inc. Checks Amount Description Check Number 786 787 788 Date Paid 08/19 08/17 09/03 09/02 09/05 09/04 09/12 47.86 33.26 275.00 80.00 45.00 60.00 50.00 789 Great Foods Grocery Target Lion's Gate Communities Electric Co-Op City Water Services Cable Connection World Services Car Care Insurance 790 791 792 Debits Debit Debit Debit Debit Debit Debit 13.56 22.94 39.65 23.74 35.00 18.39 08/19 08/25 08/27 08/28 09/08 09/10 Check Card Purchase - Family Value Gas Check Card Purchase - Domino's Pizza #0001 Check Card Purchase - Great Foods Grocery Check Card Purchase - Family Value Gas Check Card Purchase - World of Cakes Check Card Purchase - Family Value Gas .................. Amount (-) Deposit (+) 50 Balance $ 50.00 $ 2,126.251 $ 70.00 Excerpt from Jamie Lee's Check Register Checked Check Number Date Description 792 9-10 Car Care (car insurance) 793 9-10 World Card Express (credit card payment) 794 9-10 Great Foods (groceries) 795 9-14 Target (shirts) 9-15 Deposit (paycheck) Debit 9-17 Chick Fil A 100.36 $ 100.36 73.78 $ 73.78) 390.12 $ 390.12 9.03 $ 9.03 IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII 796 9-19 $ 40.00 Susie Barrett (birthday gift) Deposit 9-22 390.13 $ 390.13 Checking Account Reconciliation Statement date: September 16, 2017 Statement balance: $ 2,498.31 (Enter balance from statement) Step 1: Subtract total of outstanding checks (checks that you have written but that have not yet cleared in the banking system) Check Number Amount Check Number Amount 793 $ 70.00 794 $ 100.36 795 73.78 796 40.00 Total: $ (284.14) Step 2: Add deposits in transit (deposits you have made but that have not yet been reported on this statement) Deposit Date Amount Deposit Date Amount 9-22 390.13 7$ Total: Adjusted cash balance: $ $ 390.13 2,604.30 Checkbook balance: (Enter balance from checkbook) Step 3: Subtract fees or other charges listed on your bank statement, along with ATM withdrawals, debit card payments, and other automatic payments that are not yet reported Description Amount Description Amount Chik Fil A | $ 9.03 Total: $ (9.03) Step 4: Add any interest earned and direct deposits to your checkbook balance Interest earned: Direct deposits: Adjusted cash balance: $ (9.03) Note: At this point, the balances for both the checkbook and bank statement should be the same. If the two do not match, check your math and make sure that every check and deposit was recorded correctly. Difference in adjusted balances $ (2,613.33) (Should be zero) Page 1 of BANK STATEMENT: Link Trust Bank P.O. Box 0000000 Any City, US 12345 Page 1 of 1 Acct. ending xxx 4560 09/15/2017 Link Trust Bank Jamie Lee Jackson 126 West Street, Apt. 3A Somewhere, US 23456 Account Account Type Summary CHECKING Account Number XXXXXXXXXXX4560 Statement Period 08/16/2017 - 09/15/2017 Description Amount Average Balance $1,378.33 Number of days in Statement Period 31 Description Beginning Balance Deposits/Credits Checks Withdrawals/Debits Ending Balance Amount $1,292.09 $1,950.62 $ 591.12 $ 153.28 $2,498.31 Deposits/ Date Credits 08/18 08/25 09/01 09/08 09/15 Amount 390.12 390.13 390.12 390.13 390.12 Description DEPOSIT - Electronic Credit/Great Foods, Inc. DEPOSIT - Electronic Credit/Great Foods, Inc. DEPOSIT - Electronic Credit/Great Foods, Inc. DEPOSIT - Electronic Credit/Great Foods, Inc. DEPOSIT - Electronic Credit/Great Foods, Inc. Checks Amount Description Check Number 786 787 788 Date Paid 08/19 08/17 09/03 09/02 09/05 09/04 09/12 47.86 33.26 275.00 80.00 45.00 60.00 50.00 789 Great Foods Grocery Target Lion's Gate Communities Electric Co-Op City Water Services Cable Connection World Services Car Care Insurance 790 791 792 Debits Debit Debit Debit Debit Debit Debit 13.56 22.94 39.65 23.74 35.00 18.39 08/19 08/25 08/27 08/28 09/08 09/10 Check Card Purchase - Family Value Gas Check Card Purchase - Domino's Pizza #0001 Check Card Purchase - Great Foods Grocery Check Card Purchase - Family Value Gas Check Card Purchase - World of Cakes Check Card Purchase - Family Value Gas .................. Amount (-) Deposit (+) 50 Balance $ 50.00 $ 2,126.251 $ 70.00 Excerpt from Jamie Lee's Check Register Checked Check Number Date Description 792 9-10 Car Care (car insurance) 793 9-10 World Card Express (credit card payment) 794 9-10 Great Foods (groceries) 795 9-14 Target (shirts) 9-15 Deposit (paycheck) Debit 9-17 Chick Fil A 100.36 $ 100.36 73.78 $ 73.78) 390.12 $ 390.12 9.03 $ 9.03 IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII 796 9-19 $ 40.00 Susie Barrett (birthday gift) Deposit 9-22 390.13 $ 390.13 Checking Account Reconciliation Statement date: September 16, 2017 Statement balance: $ 2,498.31 (Enter balance from statement) Step 1: Subtract total of outstanding checks (checks that you have written but that have not yet cleared in the banking system) Check Number Amount Check Number Amount 793 $ 70.00 794 $ 100.36 795 73.78 796 40.00 Total: $ (284.14) Step 2: Add deposits in transit (deposits you have made but that have not yet been reported on this statement) Deposit Date Amount Deposit Date Amount 9-22 390.13 7$ Total: Adjusted cash balance: $ $ 390.13 2,604.30 Checkbook balance: (Enter balance from checkbook) Step 3: Subtract fees or other charges listed on your bank statement, along with ATM withdrawals, debit card payments, and other automatic payments that are not yet reported Description Amount Description Amount Chik Fil A | $ 9.03 Total: $ (9.03) Step 4: Add any interest earned and direct deposits to your checkbook balance Interest earned: Direct deposits: Adjusted cash balance: $ (9.03) Note: At this point, the balances for both the checkbook and bank statement should be the same. If the two do not match, check your math and make sure that every check and deposit was recorded correctly. Difference in adjusted balances $ (2,613.33) (Should be zero)
