Reconciling the Campbellsâ€™ Checking Account
Caleb and Eva Campbell are college students who opened their first joint checking account together at the American Bank on September 14, 2017. Theyâ€™ve just received their first bank statement for the period ending October 5, 2017. The statement and checkbook ledger are shown in the table following the Critical Thinking Questions.
Critical Thinking Questions
1. From this information, prepare a bank reconciliation for the Campbells as of October 5, 2017, using a form like the one in Worksheet 4.1.
2. Given your answer to Question 1, what, if any, adjustments will the Campbells need to make in their checkbook ledger? Comment on the procedures used to reconcile their checking account and their findings.
3. If the Campbells earned interest on their idle balances because the account is a money market deposit account, what impact would this have on the reconciliation process? Explain.