ecks as of June 30 total $2,9 nk statement lists $32 in ban e bank statement, a $80 chec eceipts of $3,656 were place ent. ment included a $40 credit fo -st earned.
ecks as of June 30 total $2,9 nk statement lists $32 in ban e bank statement, a $80 chec eceipts of $3,656 were place ent. ment included a $40 credit fo -st earned.
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
Related questions
Question
![Nolan Company's cash account shows a $26,426 debit balance and its bank statement shows $25,694 on deposit at the close of
business on June 30.
a. Outstanding checks as of June 30 total $2,907.
b. The June 30 bank statement lists $32 in bank service charges; the company has not yet recorded the cost of these services.
c. In reviewing the bank statement, a $80 check written by the company was mistakenly recorded in the company's books as $89.
d. June 30 cash receipts of $3,656 were placed in the bank's night depository after banking hours and were not recorded on the June
30 bank statement.
e. The bank statement included a $40 credit for interest earned on the company's cash in the bank. The company has not yet
recorded interest earned.
Prepare a bank reconciliation using the above information.
Bank statement balance
Add:
Deduct:
Adjusted bank balance
NOLAN COMPANY
Bank Reconciliation
June 30
Book balance
Add:
Deduct:
Adjusted book balance](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9de62490-29a1-4126-ad53-0c4c5fc3af72%2F2631ea8f-b783-4dd9-91e5-73ecba510346%2Fmaw308r_processed.png&w=3840&q=75)
Transcribed Image Text:Nolan Company's cash account shows a $26,426 debit balance and its bank statement shows $25,694 on deposit at the close of
business on June 30.
a. Outstanding checks as of June 30 total $2,907.
b. The June 30 bank statement lists $32 in bank service charges; the company has not yet recorded the cost of these services.
c. In reviewing the bank statement, a $80 check written by the company was mistakenly recorded in the company's books as $89.
d. June 30 cash receipts of $3,656 were placed in the bank's night depository after banking hours and were not recorded on the June
30 bank statement.
e. The bank statement included a $40 credit for interest earned on the company's cash in the bank. The company has not yet
recorded interest earned.
Prepare a bank reconciliation using the above information.
Bank statement balance
Add:
Deduct:
Adjusted bank balance
NOLAN COMPANY
Bank Reconciliation
June 30
Book balance
Add:
Deduct:
Adjusted book balance
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