financial algebra © 2011 cengage learning. all rights reserved. slide 1 3-2 reconcile a bank...
TRANSCRIPT
Financial Algebra© 2011 Cengage Learning. All Rights Reserved. Slide 11
3-2RECONCILE A BANK STATEMENT
Reconcile a checking account with a bank statement by hand and by using a spreadsheet.
OBJECTIVES
Financial Algebra© 2011 Cengage Learning. All Rights Reserved. Slide 22
account number bank statement statement period starting balance ending balance
outstanding deposits outstanding checks balancing reconciling
Key Terms
Financial Algebra© 2011 Cengage Learning. All Rights Reserved. Slide 33
The next slide has a bank statement and check register for Michael Biak’s checking account. What steps are needed to reconcile Michael’s bank statement?
Example 1Example 1
Financial Algebra© 2011 Cengage Learning. All Rights Reserved. Slide 44
Financial Algebra© 2011 Cengage Learning. All Rights Reserved. Slide 55
Name some reasons why a check may not have cleared during the monthly cycle and appear on the bank statement.
CHECK YOUR UNDERSTANDING
Financial Algebra© 2011 Cengage Learning. All Rights Reserved. Slide 66
Example 2Example 2
Use algebraic formulas and statements to model the check register balancing process.
Financial Algebra© 2011 Cengage Learning. All Rights Reserved. Slide 77
Nancy has a balance of $1,078 in her check register. The balance on her bank account statement is $885.84. Not reported on her bank statement are deposits of $575 and $250 and two checks for $195 and $437.84. Is her check register balanced? Explain.
CHECK YOUR UNDERSTANDING