Bank Statement Balance
$42,185.00
Per bank 03/31/25
Adjusted Bank Balance
$39,643.53
After reconciling items
Book Balance (per GL)
$39,543.53
Before adjustments
Adjusted Book Balance
$39,643.53
Reconciled ✓
Bank Statement Side
| Item | Amount |
|---|---|
| Balance per Bank Statement | $42,185.00 |
| Deduct: Outstanding Checks | |
| Ck #4422 — Vendor V02 (03/28) | ($1,850.00) |
| Ck #4423 — Vendor V04 (03/30) | ($692.47) |
| Add: Deposits in Transit | |
| Deposit — 03/31 (in transit) | $0.00 |
| Adjusted Bank Balance | $39,642.53 |
Book (GL) Side
| Item | Amount |
|---|---|
| Balance per General Ledger | $39,543.53 |
| Add: Bank Credits Not in Books | |
| Interest earned — bank credit | $99.00 |
| Deduct: Bank Charges Not in Books | |
| Monthly service charge | ($0.00) |
| NSF check — Client #C07 | ($0.00) |
| Adjusted Book Balance | $39,642.53 |
Reconciliation Result: Both sides reconcile to $39,642.53. The bank interest of $99.00 requires a journal entry: Debit Cash / Credit Interest Income. Outstanding checks #4422 and #4423 are expected to clear in April 2025.
Adjusting Journal Entry Required
| Date | Account | Description | Debit | Credit |
|---|---|---|---|---|
| 03/31/25 | Cash (1000) | Bank interest earned — per reconciliation | $99.00 | — |
| 03/31/25 | Interest Income (4100) | Bank interest earned — per reconciliation | — | $99.00 |