Day 52: Bank Reconciliations

Compare Bank's Records to the Company's Records

Reconciling Items

• Outstanding Checks (no journal entry)
• Deposits in Transit (no journal entry)
• Bank Fees       (Debit Misc. Expense,    Credit Cash in Bank)        debit memo
• Interest             (Debit Cash in Bank,     Credit Interest Income)     credit memo
• NSF                  (Debit A/R,                     Credit Cash in Bank)         debit memo
• Notes Proceeds (Debit Cash in Bank,   Credit Notes Receivable)  credit memo

Bank Reconciliations


  Bank Statement Balance   
    Add: Deposits in Transit
    Less: Outstanding Checks
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  Adjusted Bank Statement Balance  
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  Company's Cash Balance  
    Add: Interest
             Note Proceeds
    Less: Bank Fees
             NSF Checks
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  Adjusted Company Cash Balance  
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