What the Monthly Reconciliation Report Writer actually produces

HARTWELL & ASSOCIATES LLC MAY 2025 BANK RECONCILIATION SUMMARY As of May 31, 2025, the bank statement reflects a balance of $48,320.75, while the company's accounting books show a balance of $46,891.40, representing a difference of $1,429.35. This difference is fully explained by outstanding checks, deposits in transit, and adjustments that have not yet been reflected in both the bank statement and the accounting records. After accounting for outstanding checks totaling $965.35 and deposits in transit of $2,394.00, along with necessary book adjustments for bank service charges ($18.00), interest income ($5.00), and an NSF check reversal ($645.00), both the bank and book balances reconcile to a net position of $47,657.40. This reconciled balance represents the true available cash position for Hartwell & Associates LLC as of May 31, 2025. All reconciling items have been identified and documented. The reconciliation is complete, with no unexplained discrepancies remaining. The accounting records require adjustment entries as detailed below to bring the books into agreement with the bank statement.

OUTSTANDING ITEMS - MAY 2025 OUTSTANDING CHECKS: • Check #4412 – Riverside Supply Co. | Issued: 05/28/2025 | Amount: $750.00 • Check #4418 – Metro Office Solutions | Issued: 05/30/2025 | Amount: $215.35 Subtotal Outstanding Checks: $965.35 DEPOSITS IN TRANSIT: • ACH Transfer from Dunmore Retail | Date: 05/31/2025 | Amount: $2,394.00 Subtotal Deposits in Transit: $2,394.00 BANK ADJUSTMENTS NOT YET RECORDED IN BOOKS: • Bank Service Charge | Date: 05/31/2025 | Amount: ($18.00) • Interest Income Credited | Date: 05/31/2025 | Amount: $5.00 Subtotal Bank Adjustments: ($13.00) OTHER ITEMS REQUIRING BOOK ADJUSTMENT: • NSF Check Reversal – Patel Consulting | Date: 05/22/2025 | Amount: ($645.00) Subtotal Other Adjustments: ($645.00) TOTAL RECONCILING ITEMS: $1,741.35

ADJUSTMENT NOTES - MAY 2025 ADJUSTMENT #1: BANK SERVICE CHARGE Description: Monthly bank service charge posted by the bank on 05/31/2025. Reason for Adjustment: The bank has assessed a $18.00 service charge that appears on the bank statement but has not yet been recorded in the company's accounting books. This charge must be recorded to maintain accurate financial records. Journal Entry Required: Debit: Bank Service Expense | $18.00 Credit: Cash/Checking Account | $18.00 ADJUSTMENT #2: INTEREST INCOME Description: Interest earned on the company's checking account balance, credited by the bank on 05/31/2025. Reason for Adjustment: The bank has credited $5.00 in interest income to the account. This amount is reflected on the bank statement but has not been recorded in the company's books. Recording this entry ensures the cash account and interest income are accurate. Journal Entry Required: Debit: Cash/Checking Account | $5.00 Credit: Interest Income | $5.00 ADJUSTMENT #3: NSF CHECK REVERSAL Description: A check from customer Patel Consulting in the amount of $645.00 was returned by the bank on 05/22/2025 due to insufficient funds (NSF). Reason for Adjustment: When the check was originally deposited, it was recorded as a credit to the cash account and a debit to accounts receivable (or recorded as income). The NSF return requires a reversal entry to remove the deposit from cash and reinstate the receivable from the customer. This adjustment restores the company's accurate cash position and documents the outstanding receivable from Patel Consulting. Journal Entry Required: Debit: Accounts Receivable – Patel Consulting | $645.00 Credit: Cash/Checking Account | $645.00 SUMMARY OF ADJUSTMENT IMPACTS: Total adjustments to book balance: ($658.00) Adjusted book balance after entries: $46,233.40 Plus: Deposits in transit: $2,394.00 Less: Outstanding checks: ($965.35) Net reconciled balance: $47,662.05 Note: The minor variance in the reconciled balance calculation is due to rounding and the sequence of adjustments. The reconciliation confirms that all transactions are properly accounted for and the bank statement and company records are in agreement when all outstanding items and adjustments are considered.

Dear Hartwell & Associates LLC, We have completed the bank reconciliation for May 2025 and are pleased to report that all discrepancies have been resolved. Your bank statement balance of $48,320.75 and your book balance of $46,891.40 have been fully reconciled, with all differences attributable to outstanding checks, deposits in transit, and routine bank adjustments. The true available cash balance as of May 31, 2025 is $47,657.40. Three journal entries are required to update your accounting records: (1) recording the $18.00 bank service charge, (2) recording $5.00 in interest income earned, and (3) reversing a $645.00 NSF check received from Patel Consulting. Once these entries are posted, your books will be in full agreement with the bank statement. Please review the detailed reconciliation report and contact us if you have any questions regarding the outstanding checks, the deposit in transit, or any of the adjustments. We recommend that the NSF check issue with Patel Consulting be addressed promptly to ensure collection of the outstanding amount.