When Hart Furniture Company received its monthly bank statement, the bookkeeper noted that the ending balance was $1,805.36 but that the balance in the company checkbook was $2092.82. To determine the correct balance, the bookkeeper noted the following differences:

1. An EFT credit for $400 had been made to the account but not recorded by Hart.

2. A bank service charge of $13 had been subtracted from Harts account by the bank. Three ATM debit card charges ($50; $132.50; $74.38) with a total of $256.88 had been subtracted from the account by the bank.

3. Interest earnings of $6.30 had been added to Harts account.

4. A deposit on October 20 of $980 had not yet been recorded by the bank.

5. Checks for $27.92, $10, $48.95, $144.25, and $325 had not yet been processed and deducted by the bank.

Most bank statements have printed on the back of the statement a form that can be used to quickly and easily reconcile the customers checkbook or check register balance with the statement balance. Figure 9-6 shows this form as completed by the Hart Furniture bookkeeper using the information just noted. Note that the adjusted checkbook balance and the adjusted bank balance now agree, showing the correct cash balance of $2,229.24.

Reconcile the checkbook (check register) balance. Start with the last balance as recorded in the checkbook.

1. Add any bank statement credits, such as interest earned or EFT deposits not yet recorded in the checkbook.

2. Subtract any charges or debits made by the bank, such as debit card charges including ATM withdrawals service charges, check printing charges, returned check charges, or EFT charges not yet recorded in the checkbook.

This gives you your adjusted checkbook balance.

2.Reconcile the bank balance. Start with the balance as presented on the statement.

1. Add any deposits or other credits not yet recorded by the bank.

2. Subtract all outstanding checks.

This gives you your adjusted bank balance.

At month end, Johnson Hardware received the following bank statement. Use the forms that follow the statement to reconcile the check register shown in Concept Check 9.2 and the bank statement.

Can someone please, please, please help with this bank reconciliation? I am confused.

Illululllulullllllllllllllll HART FURNITURE CO. 1039 BROADWAY SAN FRANCISCO, CA 94103 CALL (415) 456-9081 24 HOURS/DAY, 7 DAYS/WEEK FOR ASSISTANCE WITH YOUR ACCOUNT PAGE 1 OF 1 THIS STATEMENT COVERS: 09/21/-- THROUGH 10/20/-- WELLS FARGO NEW! GET STAMPS AT EXPRESS ATMS WHEN YOU STOP BY FOR CASH. NEWSLINE AND, PLEASE NOTE THAT THE COMBINED TOTAL OF CASH WITHDRAWN AND STAMP PURCHASES CANNOT EXCEED YOUR DAILY CASH LIMIT. REWARD SUMMARY ACCOUNT MINIMUM BALANCE $980.17 31306686 PREVIOUS BALANCE $1,332.80 AVERAGE BALANCE $1,336.91 DEPOSITS 1,560.49 WITHDRAWALS 1,081.23 INTEREST 6.30 MONTHLY CHECKING FEE AND OTHER CHARGES 13.00 NEW BALANCE $1,805.36 CHECKS AND CHECK DATE PAID AMOUNT WITHDRAWALS 2506 9/26 124.35 2507 9/26 450.00 2508 9/26 100.00 2509 9/27 150.00 ATM WITHDRAWAL 10/08 50.00 POS PURCHASE SAFEWAY 10/09 132.50 POS PURCHASE CHEVRON 10/10 74.38 DEPOSITS CUSTOMER DEPOSIT DATE POSTED AMOUNT CUSTOMER DEPOSIT 9/25 1,160.49 EFT CREDIT 9/26 400.00 2510 27 Enter your checkbook balance $ 2,092 82 2511 10 6 30 92 00 95 25 Add any credits made to your account through interest, etc. as shown on this statement (Be sure to enter these in your checkbook). 48 400 00 2512 2513 144 325 2514 00 SUBTOTAL 2,499 - 13 256 12 00 Subtract any debits made to your account through debit card and bank charges, account foes, etc. as shown on this statement Be sure to enter these in your ...checkbook.) . 88 $ 2,229 24 Adjusted checkbook balance 3 Bank balance shown on this statement Add deposits shown in your checkbook but not shown on this statement because they were made and received after date on this statement 36 $ 1,805 980 00 Subtotal 36 2,785 556 556 Subtract checks outstanding Adjusted bank balance 12 24 $ 2.229 AMOUNT 906.97 MIDTOWN BANK JOHNSON HARDWARE COMPANY 346 POPLAR STREET MIDTOWN MIDTOWN, CA 94872 BANK THIS STATEMENT COVERS: 3/27/ -- THROUGH 4/24/-- SUMMARY PREVIOUS BALANCE $ 520.42 DEPOSITS 2,470.80+ WITHDRAWALS 2,062.35- INTEREST 5.60+ SERVICE CHARGES 7.00- NEW BALANCE $ 927.47 CHECKS AND CHECK DATE PAID AMOUNT CHECK DATE PAID WITHDRAWALS 123 3/29 65.20 130 4/06 124 4/02 150.00 126 4/03 835.20 127 4/05 72.18 128 4/05 32.80 DEPOSITS CUSTOMER DEPOSIT DATE POSTED AMOUNT CUSTOMER DEPOSIT 4/05 2,470.80 Indicates checks out of sequence Checks Outstanding Enter your checkbook balance $ 3,714 65 Bank balance shown on this Check No. statement 47 $ 927 Add any credits made to your 5 60 Add 2,942 account through interest, et 50 125 as shown on this statement deposits shown in your checkbook but not shown 129 Be sure to enter these in on this statement, because your checkbook) they were made and received after date on this statement SUBTOTAL 3,720 25 Subtract any debits made to 7 00 your account through bank Subtotal 3,869 97 charges, account fees, etc. as shown on this statement. Subtract checks outstanding 156 72 (Be sure to enter these in your checkbook. Adjusted bank balance $ 3, 713 25 Adiusted checkbook balance $ 3.713 25 Your checkbook is in balance ifline Ages with line B TOTAL Amount 72 $ 96 60 00 $ 156 72 A B C D E Deposits & Other Credits Reconciled 210 Checks & Other Debits 316.30 275.00 350.00 211 214 212 650.00 575.00 213 Date 1/3/09 1/4/09 1/6/09 1/6/09 1/6/09 1/6/09 1/9/09 1/9/09 1/12/09 1/14/09 1,150.00 216 750.00 215 600.00 975.00 Balance 7,359.15 7,084.15 6,734.15 6,084.15 5,509.15 6,659.15 5,909.15 5,309.15 6,284.15 6,224.15 6,209.15 5,809.15 6,659.15 6,584.15 5,309.15 5,169.15 4,994.15 4,644.15 4,569.15 217 SC 60.00 15.00 400.00 219 850.00 220 223 75.00 1,275.00 140.00 1/16/09 1/16/09 1/18/2009 1/21/09 1/21/09 1/22/09 1/24/09 1/24/09 218 221 175.00 227 350.00 222 75.00 B C F G . 210 211 212 213 $316.30 $275.00 $650.00 $575.00 214 215 216 $350.00 $600.00 $750.00 217 218 219 1/1/2015 1/1/2015 1/4/2015 1/4/2015 1/5/2015 1/5/2015 1/7/2015 1/8/2015 1/11/2015 1/12/2015 1/14/2015 1/15/2015 1/15/2015 1/16/2015 1/17/2015 1/18/2015 1/19/2015 1/20/2015 1/22/2015 1/23/2015 D E Starting balance Power House Utility bill Office Pro Office Supplies Rent-a-Space Rent Computer Warehouse Purchase software Deposit Southland Auto Mart Pay on account Office Maintenance Fee Cash Deposit Transportation Costs Insurance premium Warehouse Associate: Pay on account Deposit Supplies Communication Link Phone bill Up-to-the-Minute New Advertising Furniture World Office Furniture V-Tech Products Computer purchase Coral Distributors Pay on account IRS Quarterly Employee FITW $60.00 $140.00 $400.00 $7,675.45 $7,675.45 $7,359.15 $7,084.15 $6,434.15 $5,859.15 $1,150.00 $7,009.15 $6,659.15 $6,409.15 $5,659.15 $975.00 $6,634.15 $6,574.15 $6,434.15 $6,034.15 $850.00 $6,884.15 $6,809.15 $6,634.15 $6,559.15 $5,284.15 $4,634.15 $3,784.15 $1,384.15 220 221 222 223 224 225 226 $75.00 $175.00 $75.00 $1,275.00 $650.00 $850.00 $2,400.00 Illululllulullllllllllllllll HART FURNITURE CO. 1039 BROADWAY SAN FRANCISCO, CA 94103 CALL (415) 456-9081 24 HOURS/DAY, 7 DAYS/WEEK FOR ASSISTANCE WITH YOUR ACCOUNT PAGE 1 OF 1 THIS STATEMENT COVERS: 09/21/-- THROUGH 10/20/-- WELLS FARGO NEW! GET STAMPS AT EXPRESS ATMS WHEN YOU STOP BY FOR CASH. NEWSLINE AND, PLEASE NOTE THAT THE COMBINED TOTAL OF CASH WITHDRAWN AND STAMP PURCHASES CANNOT EXCEED YOUR DAILY CASH LIMIT. REWARD SUMMARY ACCOUNT MINIMUM BALANCE $980.17 31306686 PREVIOUS BALANCE $1,332.80 AVERAGE BALANCE $1,336.91 DEPOSITS 1,560.49 WITHDRAWALS 1,081.23 INTEREST 6.30 MONTHLY CHECKING FEE AND OTHER CHARGES 13.00 NEW BALANCE $1,805.36 CHECKS AND CHECK DATE PAID AMOUNT WITHDRAWALS 2506 9/26 124.35 2507 9/26 450.00 2508 9/26 100.00 2509 9/27 150.00 ATM WITHDRAWAL 10/08 50.00 POS PURCHASE SAFEWAY 10/09 132.50 POS PURCHASE CHEVRON 10/10 74.38 DEPOSITS CUSTOMER DEPOSIT DATE POSTED AMOUNT CUSTOMER DEPOSIT 9/25 1,160.49 EFT CREDIT 9/26 400.00 2510 27 Enter your checkbook balance $ 2,092 82 2511 10 6 30 92 00 95 25 Add any credits made to your account through interest, etc. as shown on this statement (Be sure to enter these in your checkbook). 48 400 00 2512 2513 144 325 2514 00 SUBTOTAL 2,499 - 13 256 12 00 Subtract any debits made to your account through debit card and bank charges, account foes, etc. as shown on this statement Be sure to enter these in your ...checkbook.) . 88 $ 2,229 24 Adjusted checkbook balance 3 Bank balance shown on this statement Add deposits shown in your checkbook but not shown on this statement because they were made and received after date on this statement 36 $ 1,805 980 00 Subtotal 36 2,785 556 556 Subtract checks outstanding Adjusted bank balance 12 24 $ 2.229 AMOUNT 906.97 MIDTOWN BANK JOHNSON HARDWARE COMPANY 346 POPLAR STREET MIDTOWN MIDTOWN, CA 94872 BANK THIS STATEMENT COVERS: 3/27/ -- THROUGH 4/24/-- SUMMARY PREVIOUS BALANCE $ 520.42 DEPOSITS 2,470.80+ WITHDRAWALS 2,062.35- INTEREST 5.60+ SERVICE CHARGES 7.00- NEW BALANCE $ 927.47 CHECKS AND CHECK DATE PAID AMOUNT CHECK DATE PAID WITHDRAWALS 123 3/29 65.20 130 4/06 124 4/02 150.00 126 4/03 835.20 127 4/05 72.18 128 4/05 32.80 DEPOSITS CUSTOMER DEPOSIT DATE POSTED AMOUNT CUSTOMER DEPOSIT 4/05 2,470.80 Indicates checks out of sequence Checks Outstanding Enter your checkbook balance $ 3,714 65 Bank balance shown on this Check No. statement 47 $ 927 Add any credits made to your 5 60 Add 2,942 account through interest, et 50 125 as shown on this statement deposits shown in your checkbook but not shown 129 Be sure to enter these in on this statement, because your checkbook) they were made and received after date on this statement SUBTOTAL 3,720 25 Subtract any debits made to 7 00 your account through bank Subtotal 3,869 97 charges, account fees, etc. as shown on this statement. Subtract checks outstanding 156 72 (Be sure to enter these in your checkbook. Adjusted bank balance $ 3, 713 25 Adiusted checkbook balance $ 3.713 25 Your checkbook is in balance ifline Ages with line B TOTAL Amount 72 $ 96 60 00 $ 156 72 A B C D E Deposits & Other Credits Reconciled 210 Checks & Other Debits 316.30 275.00 350.00 211 214 212 650.00 575.00 213 Date 1/3/09 1/4/09 1/6/09 1/6/09 1/6/09 1/6/09 1/9/09 1/9/09 1/12/09 1/14/09 1,150.00 216 750.00 215 600.00 975.00 Balance 7,359.15 7,084.15 6,734.15 6,084.15 5,509.15 6,659.15 5,909.15 5,309.15 6,284.15 6,224.15 6,209.15 5,809.15 6,659.15 6,584.15 5,309.15 5,169.15 4,994.15 4,644.15 4,569.15 217 SC 60.00 15.00 400.00 219 850.00 220 223 75.00 1,275.00 140.00 1/16/09 1/16/09 1/18/2009 1/21/09 1/21/09 1/22/09 1/24/09 1/24/09 218 221 175.00 227 350.00 222 75.00 B C F G . 210 211 212 213 $316.30 $275.00 $650.00 $575.00 214 215 216 $350.00 $600.00 $750.00 217 218 219 1/1/2015 1/1/2015 1/4/2015 1/4/2015 1/5/2015 1/5/2015 1/7/2015 1/8/2015 1/11/2015 1/12/2015 1/14/2015 1/15/2015 1/15/2015 1/16/2015 1/17/2015 1/18/2015 1/19/2015 1/20/2015 1/22/2015 1/23/2015 D E Starting balance Power House Utility bill Office Pro Office Supplies Rent-a-Space Rent Computer Warehouse Purchase software Deposit Southland Auto Mart Pay on account Office Maintenance Fee Cash Deposit Transportation Costs Insurance premium Warehouse Associate: Pay on account Deposit Supplies Communication Link Phone bill Up-to-the-Minute New Advertising Furniture World Office Furniture V-Tech Products Computer purchase Coral Distributors Pay on account IRS Quarterly Employee FITW $60.00 $140.00 $400.00 $7,675.45 $7,675.45 $7,359.15 $7,084.15 $6,434.15 $5,859.15 $1,150.00 $7,009.15 $6,659.15 $6,409.15 $5,659.15 $975.00 $6,634.15 $6,574.15 $6,434.15 $6,034.15 $850.00 $6,884.15 $6,809.15 $6,634.15 $6,559.15 $5,284.15 $4,634.15 $3,784.15 $1,384.15 220 221 222 223 224 225 226 $75.00 $175.00 $75.00 $1,275.00 $650.00 $850.00 $2,400.00