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