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Balancing a Checkbook

Balancing a Checkbook. High School Financial Planning SOL – EPF.12.

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Balancing a Checkbook

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  1. Balancing a Checkbook High School Financial Planning SOL – EPF.12 Objective: Given bank statement reconciliation form and a sample check register; (1) reconcile transactions, (2) apply earned interest and fees when applicable, (3) complete the bank reconciliation form, and (4) compare the ending balance accurately.

  2. Have you ever balanced a checkbook? Can you do it? YES, you can! Now it’s time to learn how!!! What tools will you need?

  3. Tools Bank Statement Bank Reconciliation Form Pencil or Pen Check Register

  4. Interest & Service Charges • Add any earned interest listed on your bank statement to your check register as a credit entry. • Subtract any service charges listed on your bank statement to your check register as a debit entry. • Compare your register to the one here. You should have the same two entries as highlighted in yellow.

  5. Check It Off • Compare your check register with the bank statement. Place a checkmark by all of the checks, ATM/Debit card transactions and deposits in your register that are also listed on the bank statement form. • Your check register should look like the one on the right.

  6. Outstanding Items • Outstanding items are checks, ATM/Debit card transactions and deposits that do not have a checkmark beside them in your check register Why are these items important? Proceed to the next slide to find out why!!!

  7. Reconciliation • List each outstanding check and ATM/Debit card transactions on the bank reconciliation form and calculate the total. • List all outstanding deposits on the bank reconciliation form and calculate the total. Proceed to the next slide to see what your reconciliation form should look like.

  8. Make Use of the Information • Step 1 - Using the bank reconciliation form, enter the ending balance from the bank statement on the reconciliation form. • Step 2 – Enter the total of the outstanding checks and ATM/Debit card transactions on the bank reconciliation form. • Step 3 – Subtract the bank ending balance from the outstanding checks and ATM/Debit card transactions. • Compare your reconciliation form to the one of the right.

  9. Continue… • Step 4 – Enter the total of outstanding deposits on the bank reconciliation form. • Step 5 – Add this amount to the total of step 3 • Compare your reconciliation form to the one on the right.

  10. Does it Balance? • The total you just calculated on the reconciliation form should equal the ending balance in your check register. ARE THEY EQUAL? • Yes – Great job – you are done!! Proceed to the next slide. • No – There is an error. Please click on the icon below to return to Slide 4.

  11. Assessment • When you are finished with this program and have successfully balanced your check register, bring your check register, bank statement, and reconciliation form to the classroom. You will have a test to ensure that you have mastered the objectives within this program.

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