 Hello in this presentation we will enter adjusting entries related to the bank reconciliation process for February into our bookkeeping problem in Excel keeping in mind how that same information might be input into accounting software such as QuickBooks. We will first take a quick look at QuickBooks and then move to Excel. When considering Excel or QuickBooks what we are doing within the bank reconciliation process what we have done in a prior presentation is compare the bank statement to the books and look for those items that are not matching, are not tying out. Items that are on the bank statement that are not on our books are items that need to be adjusted for. As we do that in QuickBooks typically we'll do that in the same point in time meaning we had a withdrawal and a service charge on the bank statement not on our books. What we're going to do is just enter that into our books. We go to the register we're going to say here's the $100 we're going to say it was an owner draw in the register decrease in our cash account record in the other side to the owner draws then if we jump back to the bank reconciliation we just adjusted that we fixed our books and can now check it off on the bank rec. Then we can do the same thing for the service charges the $20 the bank service charges and yes this is just a quick example we'll see this in Excel and see how we'll deal deal with this in Excel and we'll then be able to jump back this is adjusting the bank balance we'll be able to jump back and just check it off in our bank reconciliation and after we do that then we can reconcile the only reconciling items then being the outstanding checks and deposits. Let's take a look at this process in Excel. Last time in Excel we entered a bank reconciliation for the month of February reconciling the checking account we're going to go over and see the reconciliation at this time so we're going to scroll to the right scrolling all the way to the right till we get to our bank reconciliation and it's going to be all the way we see this is the January bank reconciliation we want to be in February so the one right next to it is the one we are currently working on it's in columns em through fe em through fe you'll recall that we did the bank reconciliation we tied everything out and we had these adjustments that were on the bank statement not on the books those of these two items here this $100 withdrawal and the bank service charges these are items that the bank we didn't realize that were there until we got the bank statement and now we're saying hmm we're not going to get that money back we're going to have to actually adjust our books for those amounts we show that over here in the bank reconciliation as is typically done in most book problems where we have the bank book balance here's our beginning book balance and then we have our two adjustments the withdrawal and the bank service charges in essence what we need to do is make our our ending balance adjust for those two meaning we need to include those two decreases so at the end of the day we're going to have two more items here on our bank reconciliation there's going to be a hundred dollar decrease and a twenty dollar decrease and if we were to to copy this down then then we would have our adjusted balance here which would match that out so we actually need to fix this item rather than just reconcile it here once we do that then this will be our reconciling item what we'll do is then journal entries in order to do that so we're going to make a journal entry for the withdrawal we're going to make a journal entry for the bank service charges we're going to do this with two separate journal entries we could combine them but we're going to do them with two separate journal entries we're going to say that the withdrawal something that was taken out of the bank and we don't know exactly what it was for but we suspect that it was for personal use this time and therefore rather than putting it to miscellaneous expense we're going to put it to a draws account and then the second one's going to be a bank service charge so it's going to decrease cash and we are going to enter the other side of that to be an expense of bank service charges so let's do that now we're going to go all the way to the left to get to the general journal so we're just scrolling left we're taking a scroll all the way to the left and we will enter our adjustments all the way over here it's going to be as of the end of the month so we're going to say as of two twenty eight we're in cell u fifteen u fifteen is something happening to the checking account yes we're going to say it's going to go down we're going to say it's going to go down first by that withdrawal that one hundred dollar withdrawal so we're going to copy the checking account in a j five right click and copy we're going to put that on the bottom because we will be crediting it in v sixteen right click and paste one two three we're then going to format that going to go to the home tab alignment and increase the indentation we will have a credit it's going to be in x sixteen of negative one hundred we're then going to debit something for that same amount that one hundred dollars we just need to know what that debit then should be and we're going to say that that one hundred was taken out