COMPREHENSIVE ILLUSTRATION OF BANK RECONCILIATION:
The following illustration provides a detailed example of a bank statement, additional data, the reconciliation process, and the
corresponding journal entries. Conducting a bank reconciliation requires careful attention to the slightest of details. Even the
smallest error will lead to frustration in trying to bring closure to the reconciliation effort.
BANK STATEMENT
ADDITIONAL DATA
The above bank statement is for The Tackle Shop for July of 20X3. The following additional data is needed to reconcile the
account:
• The first check listed above, #5454, was written in June but did not clear the bank until July 2.
• There were no other outstanding checks, and no deposits in transit at the end of June.
• The EFT (electronic funds transfer) on July 11 relates to the monthly utility bill; The Tackle Shop has authorized the
utility to draft their account directly each month.
• The Tackle Shop is optimistic that they will recover the full amount, including the service charge, on the NSF check
("hot check") that was given to them by a customer during the month.
• The bank collected a $5,000 note for The Tackle Shop, plus 9% interest ($5,450).
• The Tackle Shop's credit card clearing company remitted funds on July 25; the Tackle Shop received an email
notification of this posting and simultaneously journalized this cash receipt in the accounting records.
• The Tackle Shop made the 2 deposits listed above, and an additional deposit of $3,565.93 late in the afternoon on
July 31, 20X3.
• The ending cash balance, per the company general ledger, was $47,535.30.
• The following check register is maintained by The Tackle Shop, and it corresponds to the amounts within the Cash
account in the general ledger:
