Reconciling the Check Register Balance

1
Reconciling the Check Register Balance

• 1-6

2
Bank Statement

• A periodic report to a depositor showing
  deposits, payments, charges, and the balance in a
  checking account

3
Example

• See page 26
• Checks paid
• Deposits received
• Service charges
• Interest earned
• Running balance

4
Service Charge

• A bank charge or deduction for handling a
  checking account
• Examples ATM transactions, minimum balances,
  dormant accounts, withdrawals

5
Canceled Check

• A check that has been marked paid by the bank

6
Outstanding Checks

• Checks issued but not yet received and paid by
  the bank

7
Reconciliation

• The process of bringing the checkbook balance and
  bank balance into agreement

8
Reconciliation Statement

• A form showing how the checkbook and bank
  statement balances are made to agree
• See handout

9
Example

• Use the reconciliation statement handout to
  complete the following
• Ann Osters checkbook balance on May 31 was
  873.09. Her May 31 bank statement showed a
  balance of 1378.49. Checks outstanding were
  806 for 326.11, 808 for 97.56, and 809 for
  82.03. The bank service charge for May was
  5.75 and the interest earned was 5.45.

10
Homework

• Page 29
• 5, 7
• Note You will need two bank reconciliation
  statement sheets