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How do you balance your checkbook? Your roommate, Juanita, has never before had a checking account, but she finally opened one last month. Juanita is standing in the doorway of the kitchen with the check register in one hand and the recently arrived bank statement in the other. Admitting that she doesn' know what to do next, Juanita asks for your help in reconciling, or balancing, her checkbook. Being both a good friend and a student of personal finance, you've agreed to walk Juanita through the process. JUANITA: Thanks for helping me with this bank statement thing. 50 , where do we start? YoU: Let's start with some preliminary questions. IIl ask and you answer, and we'l agree on some fundamentals about reconciling bank accounts. So, why is it a good idea to reconcile your bank account or balance your checkbook? JUANITA: According to my personal finance book, reconciling my account wish help me spot potential errors in the bank statement or my own records, and it will verify my account's actual balance as of the. YoU: You're absolutely correct! Now, according to the experts, how frequently should a bank reconciliation be performed, and how frequently should ongoing or between-statement deposits and withdrawals be verified with the bank? JUANITA: That's an easy one. I remember reading that I should reconcile my bank account but I should verify my ongoing deposit and withdrawal transactions online every couple of days. Yout That's right! Now that you've got the fundamentak under control, let's go through the actual process of balancing the checkbook. Now, with Juanita's latest bank statement and her check register or ledger in hand, you can examine the documents. Use the grey sider along the right-hand side of each of the following boxes to see Juanita's bank statement and check register (account ledger). Using the documentation from the bank and from Juanitas check register, construct the bank reconcliation statement for March 26. Using the documentabion from the bank and from Juanitas check register, construct the bank reconciliation statement for March 26. Mint: Any items that you enter into the banik reconciliation statement should be entered in the order in which they appeared on the account ledger and bank statement. Juanita Smythe's Bank Reconciliation for March 29

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