Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Nakajima Co. for July: 1. Cash balance according to the company's records at July 31, $14,590. 2. Cash balance according to the bank statement at July 31, $15,500. 3. Checks outstanding, $2,960. 4. Deposit in transit, not recorded by bank, $2,380. 5. A check for $480 issued in payment of an account was erroneously recorded in the check register as $840. 6. Bank debit memo for service charges, $30. a. Prepare a bank reconciliation, using the format shown in Exhibit 12. Nakajima Co. Bank Reconciliation July 31 Cash balance according to bank statement Add deposit in transit, not recorded by bank v Deduct outstanding checks v Adjusted balance Cash balance according to company's records Add error in recording check $840 instead of $480 v Deduct bank service charge v Adjusted balance

Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Nakajima Co. for July: 1. Cash balance according to the company's records at July 31, $14,590. 2. Cash balance according to the bank statement at July 31, $15,500. 3. Checks outstanding, $2,960. 4. Deposit in transit, not recorded by bank, $2,380. 5. A check for $480 issued in payment of an account was erroneously recorded in the check register as $840. 6. Bank debit memo for service charges, $30. a. Prepare a bank reconciliation, using the format shown in Exhibit 12. Nakajima Co. Bank Reconciliation July 31 Cash balance according to bank statement Add deposit in transit, not recorded by bank v Deduct outstanding checks v Adjusted balance Cash balance according to company's records Add error in recording check $840 instead of $480 v Deduct bank service charge v Adjusted balance

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter8: Sarbanes-oxley, Internal Control, And Cash

Section: Chapter Questions

Problem 18E

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