Professional Documents
Culture Documents
Bank Reconciliations
THE
THE UNITED
UNITED STATES
STATES OF
OF AMERICA
AMERICA
THI S NOTE I S LEGAL TENDER
12 WA
SHIN
GTO
N, D
.C. 12
A
H 293
L70744629F
12 SERI ES 12
Cash Equivalents
1985
ONE
ONE DOLLAR
DOLLAR
Readily
convertible to cash
1 2 3
4 5 6 7 8 9 10
1 2 3
11 12 13 14 15 16 17
4 5 6 7 8 9 10
1 2 3
Original maturity
18 19 20 2111 2212 23 13 2414 15 16 17
4 5 6 7 8 9 10
25 26 27 28 29
18 30
19 31
20 21 22 23 24
25 26 27 28 29 30 31
to investor of 3
months or less
Commercial paper
U.S. Treasury bills
Certain money market funds
Cash Management
Necessary to ensure
company has neither too
little nor too much cash
on hand
Tools:
Cash Flows Statement
Bank Reconciliations
Petty Cash Funds
Bank Statements
Cash balance, beginning of period +
Deposits
Canceled
Customer notes checks
and interest
collected by
NSF checks
bank Service
charges
Interest earned
Deposits in Transit:
Late period deposits
not yet reflected on
bank statement
Example of
Reconciliation
Bank Statement Adjustments: Deposits
Balance per statement, June 30 $ 3,308.59
Add: Deposit in transit 642.30
7
Bank Reconciliation - Step 2
Outstanding checks:
Checks written but
not yet presented to
bank
Example of Reconciliation
Credit memoranda:
Interest earned,
customer notes collected
Example of
Reconciliation
Cash Account Adjustments:
Credit Memoranda
Balance per books,June 30 $ 2,895.82
Add:
Note collected $500.00
Interest on note 50.00
Interest earned 15.45
Recording error, #498 54.00
619.45
11
Bank Reconciliation - Step 4
Debit memoranda:
NSF checks, service
charges, etc.
Example of Reconciliation
Cash Account Adjustments:Debit Memoranda
Balance per books, June 30 $ 2,895.82
Add: Note collected $500.00
Interest on note 50.00
Interest earned 15.45
Recording error, #498 54.00
619.45
Deduct: NSF check $245.72
Collection fee – note 16.50
Service charge 20.00
(282.22)
Adjusted balance, June 30 $ 3,233.05 13
Bank Reconciliation - Step 5
Bank Reconciliation
Bank Reconciliation