🎯 Practical Case: Month-End Cash Controls
Your Mission
Prepare a bank reconciliation for "SecureBank Co." and identify the required adjusting entries!
Step 1: Analyze the Information
Bank Statement (Jan 31)
Ending Balance: $15,300
Company Books (Jan 31)
Cash Balance: $14,200
Reconciling Items:
- ✓ Deposit in transit: $2,500
- ✓ Outstanding checks: $3,200
- ✓ Bank service charge: $50
- ✓ NSF check from customer: $350
- ✓ Interest earned: $100
Step 2: Complete the Bank Reconciliation
| Bank Side | |
| Bank Statement Balance | $15,300 |
| Add: Deposit in transit | |
| Less: Outstanding checks | |
| Adjusted Bank Balance | $0 |
| Book Side | |
| Book Balance | $14,200 |
| Add: Interest earned | |
| Less: NSF check | |
| Less: Service charge | |
| Adjusted Book Balance | $0 |
Step 3: Prepare Adjusting Entries
Only book-side items require journal entries.
Which items need adjusting entries?
🎉 Reconciliation Complete!
Bank reconciliations ensure your cash records match the bank's records and identify errors or timing differences!