Question

Mrs. Jones’s checkbook register:
Date
Num
Payee
Payment
Clr
Deposit
Balance
1/1/2010

Balance forward

2,340.00
2,340.00
1/5/2010
Debit
XYZ Supermarket
145.44

2194.56
2/1/2010
1014
Rent
600.00

1594.56
2/1/2010
1015
Bis Insurance Company
320.40

1274.16
Consider what must be done, if anything, in order to finish the reconciliation process.
a.
Line 6 is $10.00 higher than line 5; look back at the statement to find the discrepancy.
b.
Any transaction that appears on the register must still be added to the bank statement.
c.
Add lines 5 and 6 together.
d.
The rent of $600 is in your checkbook but not on your bank statement.

Answer 1

d.

The $600 rent check is recorded in the checkbook but hasn’t cleared the bank (an outstanding check). For the reconciliation you list outstanding checks (subtract them from the bank statement balance) until the adjusted bank balance equals your checkbook balance.