[mbeatty03]

I need help on journalizing a bank reconsiliation statement! I know how to actually do the statement but I need some help as to how to journalize it.

[pready]

If there are things that are not in your book balance that is on the bank statement you will have to do ajournal entry for. Also any transposition errors you will need to do a journal entry for:

An exampleof something on the bank statement that is not on your books is: a Bank service Fee. The entry to record this is:
Debit Bank Service Fee (or Misc Exp) for the amount
Credit Cash for the amount
Another one will be for interest received on any investments:
Debit Cash for the amount of interest received
Credit Interest Revenue for the amount received.

For aTransposition error your entries will look like this:
Debit or Credit Accounts Receivable for the amount of the error
Credit or Debit Cash for the amount of Error
(For incorrect postings on payments from customers)

For checks you wrote:
Debit or Credit Accounts Payable for the amount of error
Credit or Debit Cash for the amount of the error.

There are also other types of entries that you will have to do. It depends on what is in your bank statement and what is not recorded in your books such as: NSF(Returned cheecks), direct payments for expenses, bank fees, etc...