Adjusted Cash Balance
We have now recorded all of the items the bank knows about that we did not know. Adding and subtracting all of the adjustments will give us an adjusted cash balance. This is the true amount of cash we have available to us. When we finish the second half of the reconciliation (adjusting the bank's records), the two adjusted cash balances should be equal. If you have done the adjustments correctly, the adjusted cash balance is $2,894.17, and the top half of the reconciliation should look like the following:
