Question

The California Bank of America will charge you $5.50 in monthly checking fees unless you

have your paycheck deposited directly and and do not use a teller for routine
transactions. Kim Lake, who lives in California, received her bank statement with this
$5.50 charge. She also had a $20 overdraft fee, a $5 check redeposit fee, and interest of
$1.15. Her bank statement's balance was $206.65, but it did not show the $1,502.80
deposit she had made. Kim's checkbook balance shows $749.90. The following checks
have not cleared: No. 480, $630.20; No. 483, $228.10; and No. 485, $130.60. Prepare
Kim Lake's bank reconciliation.

Answer 1

The preparation of Kim Lake's bank reconcilation statement is as follows:

Kim Lake's

Bank Reconciliation Statement

Balance as per bank statement = $206.65

Add uncredited deposit $1,502.80

Add bank charges $30.50

Less: unpresented checks:

No. 480, $630.20

No. 483, $228.10

No. 485, $130.60 ($988.90)

Less: Bank interest ($1.15)

Balance as per Kim's checkbook $749.90

What is bank reconciliation?

Bank reconciliation is the process of comparing the records of banking transactions as kept by the bank and those maintained by the individual or entity.

Monthly checking fees = $5.50

Overdraft fee = $20

Redeposit fee = $5

Total bank charges = $30.50