Your roommate, Samuel, s embarrassed. He has never before had a checking account, but he finally red one last month. He standing in the doorway of the kitchen with his check register in one hand and his recehly antived bank statement in the other Admitting that he doesn't know what to do next, he asked for your help in learning how to reconcle, or balance, checkbook Being both a good friend and a student of personal finance, you ve agreed to walk Sarwel through the process. Moreover, Wowing the value of doing and answering obod questions when wearing how to do something, Samuel agreed to answer your questions about the proces QDB SAMUELI Thanks for helping me with this bank statement thing. So, where do we start? Yous Lots start with some preliminary questions. 12 ask and you answer, and we'll agree on some fundamentals about to conting book accounts So, why is it a good idea to reconcle your bank account or balance your checkbook? SAMUEL: According to my personal finance book, reconciling my account will help me spot potential errors in the bank statement or my own records, and it wil verify my account's actual balance as of the reconciliation date You: You're absolutely correct. Now, according to the experts, how frequently should a bank reconciliation be performed, and how freeventy should ongoing or between statement deposits and withdrawals be verified with the bank? but I should verify my ongoing SAMUEL: That's an easy one. I remember reading that I should reconcile my bank account monthly deposit and withdrawal transactions online every couple of days. YOU. That's right Now that you've got the fundamentals under control, let's go through the actual process of tanding the checkbook Now, with Samuel's latest bank statement and is check register or ledger in hand, you can examine the documents. Use the grey sideralong the -hand side of each of the following boves to see Samuel's bank statement and the register ( at ledger). Ch 05: Assignment - Managing Checking and Savings Accounts You: That's right Now that you've got the fundamentals under control, let's go through the actual process of balancing the checkbook. Now, with Samuel's latest bank statement and his check register or ledger in hand, you can examine the documents. Use the grey slider along the right-hand side of each of the following boxes to see Samuel's bank statement and check register (occount ledger). Statement of Account September 2011 Samuel Smythe 550 Angel Street San Francisco, CA Account 348596 Balance Date Subtractions Additions Description Previous balance 9-01 9-01 $300.00 9-03 $700.00 $1,446.50 1,746.50 1,046.50 696.50 671.50 9-04 Deposit Check 900 Check 901 ATM withdrawal Deposit ATM withdrawal Deposit 350.00 25.00 9-05 9-05 75.00 746.50 9-11 35.15 711.35 1,011.35 9-15 300.00 9-18 210.00 801.35 9-21 47.65 753.70 9-22 Check 902 ATM withdrawal Deposit Check 903 ATM withdrawal 105.00 858.70 9-24 70.00 788.70 9-26 50.00 738.70 Balance Date Sep-01 Sep-03 $1,746.50 1,046.50 696.50 671.50 746.50 Sep-04 Sep-05 Sep-os Sep-11 Sep-15 Sep-18 Sep-21 Sep-22 Sep-24 Samuel's Account Ledger Transaction Description Deposit withdrawals Deposit - Payroll $300.00 Check 900 - Rent $700.00 Check 901 - Car payment 350.00 ATM withdrawal 87501 25.00 Deposit - Birthday gift 75.00 ATM withdrawal 89502 35.15 Deposit - Payroll 300.00 Check 902 - Groceries 210.00 ATM withdrawal 93503 47.65 Deposit - Stipend 105.00 Check 903 - Bookstore 70.00 ATM withdrawal 94504 50.00 Check 904 - Dry cleaning ATM withdrawal 97505 100.75 Check 905 - Car Insurance 140.00 Deposit - Belated birthday gift 225.00 ATM withdrawal 99506 37.50 711.35 1,011.35 801.35 753.70 858.70 788.70 738.70 56.00 682.70 Sep-26 Sep-27 Sep-27 Sep-27 581.95 441.95 666.95 629.45 Sep-28 Sep-29 225.00 Sep-28 Sep-29 Deposit - Belated birthday gift ATM withdrawal 99506 666.95 629.45 37.50 Using the documentation from the bank and from Samuel's check register, construct the bank reconciliation statement for September 29. (Note: Any items that you enter into the bank reconciliation statement should be entered in the order in which they appeared on the account ledger and bank statement.) Samuel Smythe's Bank Reconciliation for September 29 Ending balance per bank statement, September 26 Add: Deposit in transit Deduct: Outstanding checks and ATM transactions Check number ATM number Check number ATM number Total withdrawals Adjusted bank balance Balance per books, September 29 $ Grade It Now Save & Continue Continue without saving Your roommate, Samuel, s embarrassed. He has never before had a checking account, but he finally red one last month. He standing in the doorway of the kitchen with his check register in one hand and his recehly antived bank statement in the other Admitting that he doesn't know what to do next, he asked for your help in learning how to reconcle, or balance, checkbook Being both a good friend and a student of personal finance, you ve agreed to walk Sarwel through the process. Moreover, Wowing the value of doing and answering obod questions when wearing how to do something, Samuel agreed to answer your questions about the proces QDB SAMUELI Thanks for helping me with this bank statement thing. So, where do we start? Yous Lots start with some preliminary questions. 12 ask and you answer, and we'll agree on some fundamentals about to conting book accounts So, why is it a good idea to reconcle your bank account or balance your checkbook? SAMUEL: According to my personal finance book, reconciling my account will help me spot potential errors in the bank statement or my own records, and it wil verify my account's actual balance as of the reconciliation date You: You're absolutely correct. Now, according to the experts, how frequently should a bank reconciliation be performed, and how freeventy should ongoing or between statement deposits and withdrawals be verified with the bank? but I should verify my ongoing SAMUEL: That's an easy one. I remember reading that I should reconcile my bank account monthly deposit and withdrawal transactions online every couple of days. YOU. That's right Now that you've got the fundamentals under control, let's go through the actual process of tanding the checkbook Now, with Samuel's latest bank statement and is check register or ledger in hand, you can examine the documents. Use the grey sideralong the -hand side of each of the following boves to see Samuel's bank statement and the register ( at ledger). Ch 05: Assignment - Managing Checking and Savings Accounts You: That's right Now that you've got the fundamentals under control, let's go through the actual process of balancing the checkbook. Now, with Samuel's latest bank statement and his check register or ledger in hand, you can examine the documents. Use the grey slider along the right-hand side of each of the following boxes to see Samuel's bank statement and check register (occount ledger). Statement of Account September 2011 Samuel Smythe 550 Angel Street San Francisco, CA Account 348596 Balance Date Subtractions Additions Description Previous balance 9-01 9-01 $300.00 9-03 $700.00 $1,446.50 1,746.50 1,046.50 696.50 671.50 9-04 Deposit Check 900 Check 901 ATM withdrawal Deposit ATM withdrawal Deposit 350.00 25.00 9-05 9-05 75.00 746.50 9-11 35.15 711.35 1,011.35 9-15 300.00 9-18 210.00 801.35 9-21 47.65 753.70 9-22 Check 902 ATM withdrawal Deposit Check 903 ATM withdrawal 105.00 858.70 9-24 70.00 788.70 9-26 50.00 738.70 Balance Date Sep-01 Sep-03 $1,746.50 1,046.50 696.50 671.50 746.50 Sep-04 Sep-05 Sep-os Sep-11 Sep-15 Sep-18 Sep-21 Sep-22 Sep-24 Samuel's Account Ledger Transaction Description Deposit withdrawals Deposit - Payroll $300.00 Check 900 - Rent $700.00 Check 901 - Car payment 350.00 ATM withdrawal 87501 25.00 Deposit - Birthday gift 75.00 ATM withdrawal 89502 35.15 Deposit - Payroll 300.00 Check 902 - Groceries 210.00 ATM withdrawal 93503 47.65 Deposit - Stipend 105.00 Check 903 - Bookstore 70.00 ATM withdrawal 94504 50.00 Check 904 - Dry cleaning ATM withdrawal 97505 100.75 Check 905 - Car Insurance 140.00 Deposit - Belated birthday gift 225.00 ATM withdrawal 99506 37.50 711.35 1,011.35 801.35 753.70 858.70 788.70 738.70 56.00 682.70 Sep-26 Sep-27 Sep-27 Sep-27 581.95 441.95 666.95 629.45 Sep-28 Sep-29 225.00 Sep-28 Sep-29 Deposit - Belated birthday gift ATM withdrawal 99506 666.95 629.45 37.50 Using the documentation from the bank and from Samuel's check register, construct the bank reconciliation statement for September 29. (Note: Any items that you enter into the bank reconciliation statement should be entered in the order in which they appeared on the account ledger and bank statement.) Samuel Smythe's Bank Reconciliation for September 29 Ending balance per bank statement, September 26 Add: Deposit in transit Deduct: Outstanding checks and ATM transactions Check number ATM number Check number ATM number Total withdrawals Adjusted bank balance Balance per books, September 29 $ Grade It Now Save & Continue Continue without saving