LESSON 5 2 Bank Reconciliation Bank statement reconciliation

LESSON 5 -2 Bank Reconciliation ØBank statement reconciliation Ø Recording a bank statement charge on a check stub ØJournalizing a bank service charge CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

Competency: Understanding Cash Control Systems 2 n. Objectives: n 75 Reconcile a bank statement n 76 Journalize banking transactions n 77 Maintain petty cash records n 78 Maintain a checking account n 79 Identify security considerations related to cash control systems CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 5 -2

3 BANK STATEMENT CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning page 124 LESSON 5 -2

4 BANK STATEMENT RECONCILIATION 1. Date 2. Check Stub Balance 3. Service Charge 4. Adjusted Check Stub Balance 3 5. Bank Statement Balance 6. Outstanding Deposits 7. Subtotal 8. Outstanding Checks 9. Adjusted Bank Balance 10. Compare Adjusted Balances page 125 1 2 5 6 7 4 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 8 9 10 LESSON 5 -2

5 RECORDING A BANK SERVICE CHARGE ON A CHECK STUB 1 2 page 126 1. Write Service Charge $8. 00 on the check stub under the heading “Other. ” 2. Write the amount of the service charge in the amount column. 3. Calculate and record the new subtotal on the Subtotal line. 3 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 5 -2

6 JOURNALIZING A BANK SERVICE CHARGE page 127 August 31. Received bank statement showing August bank service charge, $8. 00. Memorandum No. 3. 4 1 2 3 1. Date. Write the date. 2. Debit. Write the title of the account to be debited. Record the amount debited. 3. Credit. Record the amount credited. 4. Source document. Write the source document number. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 5 -2

7 TERM REVIEW page 128 n bank statement CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 5 -2