Questions: Using the documentation from the bank and from Caroline's check register, construct the bank reconciliation statement for November 26. Hint: Any items that you enter into the bank reconciliation statement should be entered in the order in which they appeared on the account ledger and bank statement.

To construct the bank reconciliation statement for Caroline Smythe for November 26, we need to follow these steps:

1. Identify the ending balance per the bank statement as of November 26.
2. Add any deposits in transit that have not yet been recorded by the bank.
3. Deduct any outstanding checks and ATM transactions that have not yet cleared the bank.
4. Calculate the adjusted bank balance.
5. Compare the adjusted bank balance to the balance per Caroline's books as of November 29.

Let's break down each step:

• This is the balance shown on the bank statement as of November 26. Let's assume this amount is $5,000 for the sake of this example.

• Deposits in transit are amounts that Caroline has recorded in her check register but have not yet been recorded by the bank. Let's assume there is one deposit in transit of $500.

• Outstanding checks are checks that Caroline has written and recorded in her check register but have not yet cleared the bank. Let's assume there are two outstanding checks:
  • Check #101 for $200
  • Check #102 for $150
• Outstanding ATM transactions are ATM withdrawals that have been recorded in Caroline's check register but not yet by the bank. Let's assume there is one ATM transaction:
  • ATM #001 for $100

• Adjusted Bank Balance = Ending Balance per Bank Statement + Deposits in Transit - Outstanding Checks and ATM Transactions
• Adjusted Bank Balance = $5,000 + $500 - ($200 + $150 + $100)
• Adjusted Bank Balance = $5,000 + $500 - $450
• Adjusted Bank Balance = $5,050

• This is the balance in Caroline's check register as of November 29. Let's assume this amount is $5,050.

Here is the bank reconciliation statement for Caroline Smythe for November 26:

Caroline Smythe's Bank Reconciliation for November 26

Ending balance per bank statement, November 26: $5,000
Add: Deposit in transit: $500
Deduct: Outstanding checks and ATM transactions:
  Check #101: $200
  Check #102: $150
  ATM #001: $100
Total withdrawals: $450
Adjusted bank balance: $5,050
Balance per books, November 29: $5,050

In summary, the adjusted bank balance matches the balance per Caroline's books, indicating that the reconciliation is accurate.