First drop down options: date on the bank statement, reconciliation date

Second drop down options: quarterly, monthly

How Do You Balance Your Checkbook? Your roommate, Kai, is embarrassed. He has never before had a checking account, but he finally opened one last month. He's standing in the doorway of the kitchen with his check register in one hand and his recently arrived bank statement in the other. Admitting that he doesn't know what to do next, he's asked for your help in learning how to reconcile, or balance, his checkbook. Being both a good friend and a student of personal finance, you've agreed to walk Kai through the process. Moreover, knowing the value of asking and answering good questions when learning how to do something, Kai agreed to answer your questions about the process. Kai: Thanks for helping me with this bank statement thing. So, where do we start? You: Let's start with some preliminary questions. I'll ask and you answer, and we'll agree on some fundamentals about reconciling bank accounts. So, why is it a good idea to reconcile your bank account or balance your checkbook? According to my personal finance book, reconciling my account will help me spot potential errors Kai: in the bank statement or my own records, and it will verify my account's actual balance as of the You're absolutely correct! Now, according to the experts, how frequently should a bank reconciliation be performed, and how frequently should ongoing or between-statement deposits and withdrawals be verified with the bank? You: That's an easy one. I remember reading that I should reconcile my bank account but I should verify my ongoing deposit and withdrawal transactions online every couple of days. Kai: That's right! Now that you've got the fundamentals under control, let's go through the actual process of balancing the checkbook. You: Now, with Kai's latest bank statement and his check register or ledger in hand, you can examine the documents. Use the grey slider along the right-hand side of each of the following boxes to see Kai's bank statement and check register (account ledger). Fourth State Bank of San Francisco, CA Statement of Account Kai Smythe 550 Angel Street San Francisco, CA Date 11-01 11-01 November 2011 Description Previous balance Deposit Account 348596 Balance 1,446.50 1,796.50 Subtractions Additions 350.00 Check 500 Check 501 ATM withdrawal Deposit ATM withdrawal Deposit Check 502 ATM withdrawal 11-03 11-04 11-05 11-05 550.00 275.00 25.00 1,246.50 971.50 946.50 1,034.00 998.85 1,348.85 1,183.85 1,136.20 87.50 35.15 11-15 11-18 11-21 350.00 165.00 47.65 Deposit Check 50:3 ATM withdrawal 122.50 11-22 11-24 11-26 1,258.70 1,203.70 1,153.70 55.00 50.00 Kai's Account Ledger Deposit $350.00 Transaction Description Deposit Payroll Check 500 Rent Check 501 Car payment ATM withdrawal 87501 Deposit Birthday gift ATM withdrawal 89502 Withdrawals Date Nov-01 Nov-03 Nov-04 Nov-05 Nov-05 Nov-11 Balance $1,796.50 1,246.50 971.50 946.50 1,034.00 998.85 $550.00 275.00 25.00 87.50 35.15 Nov-15 Nov-18 Nov-21 Nov-22 Nov-24 Nov-26 Nov-27 Nov-27 Deposit Payroll Check 502 Groceries ATM withdrawal 93503 Deposit Stipend Check 503 Bookstore ATM withdrawal 94504 Check 504 Dry cleaning ATM withdrawal 97505 1,348.85 1,183.85 1,136.20 1,258.70 1,203.70 1,153.70 1,109.70 1,008.95 350.00 165.00 47.65 122.50 55.00 50.00 44.00 100.75 Check 505 Car insurance Deposit Belated birthday gift ATM withdrawal 99506 Nov-27 110.00 898.95 Nov-28 262.50 1,161.45 Nov-29 37.50 1,123.95 Using the documentation from the bank and from Kai's check register, construct the bank reconciliation statement for November 26 Note: Any items that you enter into the bank reconciliation statement should be entered in the order in which they appeared on the account ledger and bank statement. Kai Smythe's Bank Reconciliation for November 29 Ending balance per bank statement, November 26 Add: Deposit in transit Deduct: Outstanding checks and ATM transactions Check number ATM number Check number ATM number Total withdrawals Adjusted bank balance Balance per books, November 29