Objective: analyze the checking account transactions made in our banking simulation

1. Objective: analyze the checking account transactions made in our banking simulation January 1- 31st

2. Check Register January

3. Reconciliation • Definition: to have two items agree • Review handout on reconciliation basics • Definition: adjusted balance- New balance for checkbook and bank statement after the reconciliation process has been completed.

4. What do we do with the following exercise? • Student with cards move to the front of the room.

5. Reconciliation Example • Reconcile the following bank statement and checkbook register. You must have your adjusted balance completed to receive full credit. Note: the numbers on both sides must equal. • Bank Statement Ending Balance: $5,000 • Check Register Ending Balance: $5,800 • Reconcile the differences—use tick marks!

6. Continued • The following items were not found in both the checkbook register and the bank statement. • Service Fees $4.00 • Interest Earned $ 12.00 • Check Fees $8.00 • Outstanding Deposits $850.00 • Outstanding Checks $ 85.00 • Checkbook error (forgot to record in register a check for $35.00)

8. Final Assessment • Test Chapter Four– Wednesday, • Key terms from notes and handouts, reconciliation, and checking account simulation

9. Closure • What happens when the adjusted balances don’t agree? • What should you do first? • How often does the bank make mistakes?

10. Reconciliation Bank Statement -- $5,000 Checkbook Balance-- $5,800 - 4.00 (SF) +12.00 (I) - 8.00 (CF) -35.00 (E) = 5765.00 (adjusted balance) • + 850.00 (OD) • - 85.00 (OC) • = 5765.00 (adjusted balance)

11. Practice Problem 2 Bank $6000 Checkbook $6,800 Adjusted Balance = 6765 • Adjusted Balance= 6765