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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![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
Adjusted balance
$4
Cash balance according to company's records
Add error in recording check $840 instead of $480
Deduct bank service charge v
Adjusted balance
Feedback
b. If the balance sheet is prepared for Nakajima Co. on July 31, what amount should be reported for cash?
$
c. Must a bank reconciliation always balance (reconcile)?
Yes v
Feedback
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Transcribed Image Text: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
Adjusted balance
$4
Cash balance according to company's records
Add error in recording check $840 instead of $480
Deduct bank service charge v
Adjusted balance
Feedback
b. If the balance sheet is prepared for Nakajima Co. on July 31, what amount should be reported for cash?
$
c. Must a bank reconciliation always balance (reconcile)?
Yes v
Feedback
Feedback
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