4-1 Mark's First Checking Account During his first year in college, Mark Sutherland opened a...
4-1 
Mark's First Checking Account
During his first year in college, Mark Sutherland opened a checking account at the First National Bank of Arlington, Texas. His account does not have a minimum balance requirement, but he does pay a monthly service charge of $3.00. Mark has just received his first monthly bank statement and notices that the end-of-month balance on the statement is quite different from the end-of-month balance he shows in his check register. The bank statement and Mark's check register are summarized below.
Bank Statement of Activity This Month
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ACCOUNT:Mark J. Sutherland ACCOUNT # 43967
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PERIOD: January 3, 2011 through January 31, 2011
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Beginning Balance 300.00
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TotalDeposits and Other Credits to Your Account 300.00
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TotalChecks and Other Charges to Your Account 206.25
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Ending Balance 93.75
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Date
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Transaction
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|
|
|
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03
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Deposit
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300.00
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|
|
|
05
|
100
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|
16.50
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|
|
07
|
101
|
|
20.00
|
|
|
09
|
Debit card transaction
|
|
17.45
|
|
|
12
|
103
|
|
42.96
|
|
|
14
|
104
|
|
16.87
|
|
|
17
|
105
|
|
5.00
|
|
|
17
|
106
|
|
11.43
|
|
|
17
|
ATM
withdrawal
|
|
25.00
|
|
|
19
|
107
|
|
25.00
|
|
|
24
|
108
|
|
14.04
|
|
|
28
|
109
|
|
9.00
|
|
|
31
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Service charge
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|
3.00
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|
Mark's Check Register
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Date
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No.
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Payee
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For
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Amount
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Balance
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1/3
|
|
Deposit
|
|
300.00
|
300.00
|
|
1/3
|
100
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Harmon Foods
|
Food
|
16.50
|
283.50
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|
1/4
|
101
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Cash
|
|
20.00
|
263.50
|
|
1/5
|
102
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VOID
|
|
|
|
|
1/7
|
103
|
Mel's Sporting Goods
|
Gym shoes
|
42.96
|
220.54
|
|
1/10
|
104
|
Valley Cleaners
|
Dry cleaning
|
18.67
|
201.87
|
|
1/13
|
105
|
Sharon Mackey
|
Birthday present
|
5.00
|
196.87
|
|
1/14
|
106
|
University Bookstore
|
Supplies
|
11.43
|
190.44
|
|
1/14
|
107
|
Cash
|
|
25.00
|
175.44
|
|
1/19
|
108
|
Harmon Foods
|
Food
|
14.04
|
161.40
|
|
1/24
|
109
|
Mom
|
Repay loan
|
9.00
|
152.40
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|
1/25
|
110
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Poindexter's Café
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Sharon's birthday party
|
20.00
|
132.40
|
|
1/26
|
|
Deposit
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|
50.00
|
182.40
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|
1/28
|
111
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Exxon
|
Monthly statement
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12.96
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169.44
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1. What are the steps Mark needs to include when reconciling his account register with the bank's statement?
2. Reconcile Mark's register with the bank statement using the steps listed in the previous answer.
3. Why are there differences between Mark's records and the bank's statement? What could Mark do during the next month to make the month-end reconciliation easier?
4. Suppose Mark finds a $100 deposit in his bank statement that he knows he did not make. What should he do?