CengageNOW: Bank Reconciliations in General Ledger (CLGL)

in this video you will learn how to reconcile a bank statement with a cash account using cengage learning general ledger the reconciliation task is found under the banking tab this function will work whenever there are past general journal or cash payments journal transactions with credits to the cash account which are assumed to be the checks to be accounted for in this example we see that the current checkbook balance is pre-populated for us at eighteen thousand eight hundred and eighty five dollars if the problem had been completed correctly up to this point this should be the correct balance of the cash account the problem tells us that the bank statement just received shows a cash account balance of twenty-three thousand seven hundred and seventy five dollars down at the bottom we see the running totals for the adjusted checkbook balance and the adjusted bank balance our goal will be to get these two accounts to equal one another on the upper writer listed all of the journalized check transactions to date the next step will be to locate the checks that are currently outstanding from this list this information may be in the text problem or it may be in the online instructions if the text problem does not go into this level of detail in this case we have information that three checks are outstanding number is 2506 2508 and 2509 to mark them as still outstanding double-click on them or click on the select button and they will drop into the outstanding checks box if we mark any an error we can just highlight them and click on the remove button the total of these checks should equal the total amount of outstanding checks next look at the text problem or online instructions to determine outstanding deposits also called deposits in transit in this case we have two of these deposits and so we will enter these amounts in any order next look at the problem information to determine miscellaneous bank charges or credits that we need to account for in this problem we have one though collected for thirty seven hundred and eighty dollars which the bank is credited to our account note that a credit to the bank is a debit to our cash account thus increasing it this is an important concept worth pointing out to students in discussing bank reconciliations the bank has also charged as two amounts which should be credits to our cash account the monthly bank charges are one hundred and ten dollars and there was an incorrect recording of a previous check in the amount of $70 note that errors of this second type could go either way if it increases our cash balance it should go in the bank credit list if it decreases our balance then it goes in the bank charges list when we have entered all reconciliation information correctly the adjusted checkbook balance and the adjusted bank balance will now equal one another click on the Save button to save this reconciliation for later grading you can now display or parentheses by the option under the reports section of the left menu most reconciliation problems also require that the student make general journal or cash payments journal entries to record any of their reconciliation information that changes the company's cash balance these need to be completed using the journal entry options under the general ledger tab before submitting the problem for grading you

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