What is the last step in reconciling a checking account?

• A. Record bank service charges in the check register
• B. Compare the adjusted balances to ensure they agree
• C. Add deposits in transit to the bank statement balance
• D. List all outstanding checks

Answer: (B)

Verified step by step guidance

1. Understand the purpose of reconciling a checking account: The goal is to ensure that the bank statement balance matches the check register balance after accounting for any discrepancies such as outstanding checks, deposits in transit, or bank service charges.
2. Start by identifying the bank statement balance and the check register balance. These are the two balances that need to be reconciled.
3. Adjust the bank statement balance by adding deposits in transit (deposits made but not yet reflected in the bank statement) and subtracting any outstanding checks (checks issued but not yet cleared by the bank).
4. Adjust the check register balance by recording any bank service charges, interest earned, or other adjustments that appear on the bank statement but are not yet recorded in the check register.
5. Compare the adjusted bank statement balance and the adjusted check register balance to ensure they agree. This is the final step in reconciling a checking account.