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Chapter 4
Critical Thinking Case 2
Reconciling the Wells’ Checking Account

Vivian and Rowen Wells are college students who opened their first joint checking account at the American Bank on September 14, 2020. They’ve just received their first bank statement for the period ending October 5, 2020. The statement and checkbook ledger are shown in the table below.

From this information, prepare a bank reconciliation for the Wells family as of October 5, 2020, 

Given your answer to Question 1, determine what, if any, adjustment will the Wells family need to make in their checkbook ledger. Enter the answers as positive value. Round the answer to the nearest cent.

$  

If the Wells family earned interest on their idle balances because the account is a money market deposit account, what impact would this have on the reconciliation process?

The effect of the interest earnings would have been a(n) -Select-decreaseincreaseItem 19 in both bank and checkbook balances.

Explain.

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