need help: bank reconciliation. Finance homework

[chaser]

If you have the time please dont just answer it, I need to know the steps so i can understand it

Any help is greatfully appriciated

On November 1, 2009, Broom Company received a bank statement
that showed a $2,950 balance. Broom showed a $4,010
checking account balance. The bank didn’t return check No.
124 for $1,080 and check No. 138 for $720. A $3,200 deposit
made on October 30 was in transit. The bank charged Broom
$12 for check printing and $18 for an NSF check. Broom forgot
to record a $30 withdrawal at the ATM. The bank also collected
a $400 note for Broom. Prepare a bank reconciliation.

 

[chaser]

Can't see YOUR reconciliation, so can't check it.

sorry, i should have given you a better heads up. I have no idea where to start with how to even attempt this. This is part of the study guide and the teacher said we wouldnt need to know this. She didnt even cover this area. You dont even have to answer this at all. If someone could walk me through on how to prepare one that is great. I understand I would need to post my answer and then someone could find where I messed up. I just have no idea how to do one, i have searched the internet and no luck.

thank you for your time, i didnt join to just get answers. Math is not a stong area for me and someone told me to check this area out for help. Please let me know if Im going about this the wrong way.

Thank you guys

 

[chaser]

A reconciliation is just a way to explain the difference between two sets of records. You correct each set of records and compare the two corrected balances. If they agree after correction, they are reconciled. If not, there is a problem somewhere.

\(\displaystyle 4,010 - 12 - 18 - 30 + 400 = 4,350 = corrected\ check\ book\ balance.\)

\(\displaystyle 2950 - 1080 - 720 + 3200 = 4,350 = corrected\ bank\ balance.\)

\(\displaystyle 4,350 - 4,350 = 0 = Discrepency.\)

Now accountants may have a standard format to make this pretty, but that's it conceptually.

Here it is in a prettier but still not necessarily standard professional format

4,350 - 4,350 = 0 = Discrepency <----- so if this = anything other then 0, then there is something that was added or subtracted incorrectly on either statements. This would mean I go back and correct this, or is there instinces where its ok to equal something other then 0? Sorry for the wierd questions Im trying to wrap my head around it.

ps thank you for your time

 

[chaser]

I am not an accountant or bookkeeper so I do not guarantee that I am using the word in its most technical sense, but the general usage in the business world revolves around this idea.

Two different entities (different companies, different departments in the same company, different computer systems) are keeping records that should be identical. That is, what the bank says is in your account should agree with what you say is in your account. Periodically, you check to ensure that the two sets of records say the same thing. In practice, what happens when you go to check is that the different records do NOT agree, but they SHOULD. There are two reasons why this happens. One is that there are delays in the record keeping process. For example, you do not know what the fees are on your bank account until you get the statement from the bank so you have not yet put them into your checkbook, but they are already reflected on the bank statement. The second is that there may be mistakes in the process of recording: you wrote a check for $43 and it got recorded by the bank as a check for $48.

So when you "reconcile," you first correct each set of records for any delays in recording and then you correct any errors you made in your records. If the two amounts agree after that, if there is no discrepency, then the two sets of records agree, and all is well. The records are "reconciled." If the discrepency is NOT zero, then there is either a mistake somewhere or a disagreement.

Thank you so much for saying it in dummy terms for me, I know you guys must get a ton of people asking for just answers to questions so they can cheat or whatever. Rest assure my intensions are for pure learning, in hopes to be the first in my family to have a Degree.

Once again thank you guys for your help. I hope to help answer others in the near future