Exercise 6-12A (Algo) Determining the true cash balance, starting with the unadjusted book balance LO 6-3 Nickleson Company had an unadjusted cash balance of $9,554 as of May 31. The company's bank statement, also dated May 31, included a $80 NSF check written by one of Nickleson's customers. There were $402 in outstanding checks and $215 in deposits in transit as of May 31. According to the bank statement, service charges were $80, and the bank collected an $1,000 note receivable for Nickleson. The bank statement also showed $15 of interest revenue earned by Nickleson. Required: Determine the true cash balance as of May 31. (Hint: It is not necessary to use all of the preceding items to determine the true balance.) True cash balance

Exercise 6-12A (Algo) Determining the true cash balance, starting with the unadjusted book balance LO 6-3 Nickleson Company had an unadjusted cash balance of $9,554 as of May 31. The company's bank statement, also dated May 31, included a $80 NSF check written by one of Nickleson's customers. There were $402 in outstanding checks and $215 in deposits in transit as of May 31. According to the bank statement, service charges were $80, and the bank collected an $1,000 note receivable for Nickleson. The bank statement also showed $15 of interest revenue earned by Nickleson. Required: Determine the true cash balance as of May 31. (Hint: It is not necessary to use all of the preceding items to determine the true balance.) True cash balance

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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QUESTION 12 Brown Company's bank statement for September 30 showed: 6 poinis Bank statement balance Book balance of cash $2.790 $3.724 The following information was also available as of September 30: a. A customer's check for $150 marked NSF was returned to Brown Company by the bank. In addition, the bank charged the company's account a $10 processing fee. b. The September 30 cash receipts, $3,000 were placed in the bank's night depository after banking hours on that date and this amount did not appear on the September 30 bank statement. C. Outstanding checks amounted to $2,190. d. A check for rent expense was written for $326 but by mistake was recorded in the accounting records as $362. Required: Prepare bank reconciliation as of September 30.
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