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Bank Fees and Bank Reconciliation

Bank fees are squeezing customers according to an article in The Record (Hackensack,NJ) dated April 20, 2006. Banks are having a hard time making money lending, so many are charging more and higher fees. Meanwhile, interest paid on interest-bearing checking accounts remains low.Kayla Siska received her bank statement from the Commerce Bank which increased its overdraft fee from $33 to $35. To avoid future overdraft fees and bounced-checks (NSF) fees, Kayla wants to make sure her chequebook is in balance.

The following checks have not cleared the bank: No. 634, $58.30; No. 635, $108.75; and No. 637, $112.68. Her chequebook balance shows $698.23. She received a $1.75 in interest. She also was charges a $35.00 overdraft fee. The bank shows a balance of $320.10. A $621.61 deposit was not recorded. Prepare Kayla's bank reconciliation.

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Bank Reconciliation
April 20, 2006

Balance per bank, unadjusted 320.10
Deposit in transit 621.61
Less ...

Solution Summary

Guidelines are provided on how to prepare a bank reconciliation.