What steps should a broker follow in preparing an account reconciliation?
a. Enter the ending bank statement balance, and list out the deposits in transit. b. Add the deposits in transit to the ending bank statement balance to obtain a subtotal. c. List out the outstanding checks. d. Subtract the outstanding checks from the subtotal to obtain the adjusted bank balance as of the ending date shown on the account statement to be reconciled. e. Compare the adjusted bank balance to the journal balance. They should be equal, and if not, an error has occurred and the account should be further reviewed to locate the error and correct it.
