Credit Card Reconciliation Assignment

Definitions:

A credit card statement is a financial document that provides a detailed list of all of the expenses incurred using a credit
card.

Reconciliation refers to the process of comparing transactions you have recorded for a financial account (or it could be
receipts you kept for each transaction you made) against a monthly statement from a bank, credit card or other financial
institution.

Upon completion of this activity, you will be able to:

 Use a chart of accounts.

 Perform credit card reconciliations.

Part 1: Reconciliation of a Credit Card Statement.

Title: Your Name, Administrative Assistant.

Location: Victoria, British Columbia.

Company: Evolution Human Resource Services.

Department: Marketing.

Instructions: Reconcile the list of expenses in Table 1 with the credit card statement in Table 2 by placing a check mark
in the reconciled column in Table 2.

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Table 1. List of Expenses from February 4st to February 6th, 2019.

Receipts
Merchant Date of Expense Amount
Air Canada, Ticket 04/02/2019 $800.55
(return)
Holiday Inn, Montreal 04/02/2019 $150.00
Holiday Inn, Montreal 05/02/2019 $150.00
Budget Rent A Car 06/02/2018 $350.00
Parking Pass Day 1 04/02/2018 $40.00
Parking Pass Day 2 05/02/2018 $40.00
Total: $1530.55

Table 2. Credit Card Statement for the month of February.

Billing Date Account Number Account Transaction Merchant Gross Reconciled

Holder Date Amount
28/02/2019 XXXXXXXXX03333 Penny Smith 04/02/2019 Air Canada $800.55 

28/02/2019 XXXXXXXXX03333 Penny Smith 04/02/2019 Air Canada, $50.00

Baggage Fee
28/02/2019 XXXXXXXXX03333 Penny Smith 04/02/2018 Holiday Inn, $150.00 
Montreal
28/02/2019 XXXXXXXXX03333 Penny Smith 05/02/2018 Holiday Inn, $150.00 
Montreal
28/02/2019 XXXXXXXXX03333 Penny Smith 06/02/2018 Meals $210.00

28/02/2019 XXXXXXXXX03333 Penny Smith 04/02/2018 Budget Rent $350.00

A Car
28/02/2019 XXXXXXXXX03333 Penny Smith 04/02/2017 Parking Pass $100.00
Day 1

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28/02/2019 XXXXXXXXX03333 Penny Smith 05/02/2017 Parking Pass $40.00 
Day 2
Total: $1850.55

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Part 2: Short Answer Questions.
1. Were all of the credit card transactions reconciled? Yes or No?
No

2. If you answered no to question one, which items were not reconciled? Why?

The items that was not reconciled was Air Canada (Baggage Fee), Meals, Budget Rent a Car, and Parking Pass One day.
These transactions were not reconciled because the list of expenses do not match the credit card statement.

3. What happens if you are over charged by your credit card company? How would you rectify this situation?

If you were overcharged on your credit card by your credit card company you should call right away. Everything is
electronic now a days. You would explain to the company you did not make this purchase. The credit card company will
investigate immediately. They can view all your transactions online.

4. Why is it important to keep a record of all of your credit card transactions or keep copies of all of the expense
receipts? What happens if a receipt is missing?
5.

It is important to keep all your records of your credit card transactions because it reduces the risk of fraudulent activity.
Process payments promptly to avoid late payment charges. You can keep the receipts for tax purposes in case revenue
Canada decides to ask for proof of purchases. Another reason it is important to keep copies is to verify your receipts with
your monthly statement.

6. Complete the lost receipt Memorandum on the next page for one of the items you are missing a receipt for.

Note: you may make up any necessary information that is required.

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 MEMORANDUM

TO: Financial Services FROM: Evolution Human Resource Services

Requisitions Processing Section

DATE: February 30, 2018 PHONE: 905 550-2277

TRAVEL CLAIM #25467

REQUISITION #0055-2233

RE: Original Receipts/Invoices

I hereby certify that Budget Rent a Car (Renting a car for travelling)

Amount $350.00

Has/have been lost or misplaced. This/These expense/s were incurred on February 6, 2018

(Date)

And are billable to Project/Grant number #31555

These expenses have not and will not be claimed from any other source.

Baylie Merlin

PAYEE/REQUESTER SIGNATURE PRINT NAME Baylie Merlin

Sarah Gionet

AUTHORIZED SIGNATURE PRINT NAME Sarah Gionet

(at least one admin level higher than payee)

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7. Using the Chart of Accounts in Table 3, indicate the account you would charge each item to in Table 4.

Table 3. Chart of Accounts.

Office Location Office Department Department Type of Expense Expense

Codes Codes Codes
St. John 01 Sales 2300 Accommodations 31220
Charlottetown 02 Marketing 2301 Meals 31224
Halifax 03 Finance 2602 Memberships 31330
Fredericton 04 Facilities 2632 Travel (Plane, Car, Bus) 31555
Quebec City 05 Sales 2300 Honorariums 61080
Toronto 06 Promotions 71250
Winnipeg 07 Office Supplies 71149
Regina 08 Professional Development 71150
Edmonton 09 Membership & Dues 71425
Victoria 10 Telecommunication 72010
Other/Miscellaneous 71110

Table 4. Expenses with Chart of Account Codes.

Merchant Account Code

Air Canada, Ticket 05-2301-31555
Air Canada, Baggage Fee 05-2301-31555
Holiday Inn, Montreal 05-2301-31220
Holiday Inn, Montreal 05-2301-31220
Meals 05-2301-31224
Budget Rent A Car 05-2301-31555
Parking Pass Day 1 05-2301-31555
Parking Pass Day 2 05-2301-31555

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8. Why is the process of reconciliation so important?

The process of reconciliation is so important because you can inspect fraudulent activity
and to prevent financial statement errors.

9. How often should you reconcile your accounts?

You should reconcile your account monthly. The end cycle of your credit card
statement would be a good time to reconcile your account.