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 $5,834 as of May 31. The company's bank statement, also dated May 31, included an NSF check in the amount of $80 written by one of Nickleson's customers. There were $680 in outstanding checks and $275 in deposits in transit as of May 31. According to the bank statement, service charges were $30, and the bank collected a note receivable of $850 for Nickleson. The bank statement also showed $24 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.)

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 $5,834 as of May 31. The company's bank statement, also dated May 31, included an NSF check in the amount of $80 written by one of Nickleson's customers. There were $680 in outstanding checks and $275 in deposits in transit as of May 31. According to the bank statement, service charges were $30, and the bank collected a note receivable of $850 for Nickleson. The bank statement also showed $24 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.)

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter6: Bank Accounts, Cash Funds, And Internal Controls

Section: Chapter Questions

Problem 5E

See similar textbooks

Related questions

Q: The answer provided is not correct, please provide the correct value

A: Free Cash Flow Free Cash flow which can be determined by using the amount of net operating cash flow…

Q: Enter the November 1 balances in the ledger accounts. Cash Accounts Receivable Supplies Equipment…

A: Ledger account: It is used to record the business transactions that were made during a financial…

Q: Could you explain without using the excel?

A: The face value of the bond is $1,000. The coupon rate is 2%. The period is 6 years. The interest…

Q: Give an explanation about this statement: Why does control or internal control fails?

A: Internal control refers to the process of implementing and exercising the various mechanisms, rules,…

Q: What is EBITDA?

A: EBITDA is a metric which is used to measure the company's profitability. Though there is no legal…

Q: Question D is incorrect. Can you check the answer

A: Here discuss about the details of the taxable income and income tax which are incurred with the tax…

Q: can you solve by ansewring the question'a in a fromual.

A: Data given: Costs of house(Purchase price) =$250,000 Down payment = 2% of the purchase price.…

Q: Why is EBITDA controversial?

A: Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is a metric used to assess…

Q: about Question D and E?

A: Answering the part D and E as specifically asked

Q: What is a double-entry? Give an example?

A: Double entry: Double-entry refers to the double effect of each financial transaction that occurs.…

Q: provide answer with explantion

A: student provide question as link please I am unable to see question for this definitely I will share…

Q: Prepare a trial balance at November 30. WILDHORSE EQUIPMENT REPAIR Trial Balance Debit Credit %24…

A: A trial balance lists the ending balances of all the ledger accounts. The total of the debit side of…

Q: What are the problems caused by lack of integration? Expalin

A: Enterprise resource planning (ERP) system: It is the combined management of different activities…

Q: On November 1, 2022, the following were the account balances of Wildhorse Equipment Repair. Debit…

A: Income statement is a statement that helps in determining the income or the profit and loss of a…

Q: How do I solve this

A: Accounting equation in financial accounting says that at any particular point of time, total assets…

Q: Zina Manufacturing Company started and completed Job 501 in December with the following Job Cost…

A: Job costing means where actual direct cost is included in specific cost and overhead is applied on…

Q: What is COSO? What is the PCAOB? Why are they important?

A: Committee of Sponsoring Organizations of the Tread way Commission (COSO) is an organization formed…

Q: You want me to get a

A: Approach to solving the question: Detailed explanation: Examples: Key references:

Concept explainers

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

Question

PLEASE ANSWER WITHOUT IMAGE

3
ances
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 $5,834 as of May 31. The company's bank statement, also dated May 31,
included an NSF check in the amount of $80 written by one of Nickleson's customers. There were $680 in outstanding checks and
$275 in deposits in transit as of May 31. According to the bank statement, service charges were $30, and the bank collected a note
receivable of $850 for Nickleson. The bank statement also showed $24 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

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Understanding of bank reconciliation statement

VIEW

Step 2: Preparation of bank reconciliation

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The bank reconciliation shows the following adjustments: Deposits in transit: $852 Notes receivable collected by bank: $1,000; interest: $20 Outstanding checks: $569 Error by bank: $300 Bank charges: $30 Prepare the correcting journal entry.
The bank reconciliation shows the following adjustments: Deposits in transit: $1,234 Outstanding checks: $558 Bank service charges: $50 NSF checks: $250 Prepare the correcting journal entry.
Record the following transactions: A. Started a petty cash fund in the amount of $1,000. B. Replenished petty cash fund using the following expenses: Auto $61, Office Expenses $23, Postage Expense $57, Miscellaneous Expenses $30. C. The company has decided to reduce the petty cash fund to $600.
At year-end (December 31). The Company estimates its bad debts as 0.60% of its annual credit sales of $997,00o. The Company records its Bad Debts Expense for that estimate. On the following February 1. The Company decides that the $499 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Prepare The Company's journal entries for the transactions. View transaction list Journal entry worksheet 1 3 4 > 2 Record the estimated bad debts expense. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Record entry Clear entry View general journal
1
siubject : accounting
hsl.6
please give me correct asnwer with explanation thnks
nstructions The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6: 1. Cash balance according to the company's records at August 31, S24,270. 2. Cash balance according to the bank statement at August 31, $32,278. 3. Checks outstanding, $14,668. 4. Deposit in transit not recorded by bank, $7,170. 5. A check for $58 in payment of an account was erroneously recorded in the check register as $580. 6. Bank debit memo for service charges, S12. Journalize the entry or entries that should be made by the company. Refer to the Chart of Accounts for exact wording of account titles.
Instructions The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6: Cash balance according to the company's records at August 31, $22,569. Cash balance according to the bank statement at August 31, $29,187. 3. Checks outstanding, $13,346. Deposit in transit not recorded by bank, $7,087. A check for $42 in payment of an account was erroneously recorded in the check register as $420. 6. Bank debit memo for service charges, $19. Journalize the entry or entries that should be made by the company. Refer to the Chart of Accounts for exact wording of account titles. 1. 2. m4. 5.
Required information The following information is available to reconcile Branch Company’s book balance of cash with its bank statement cash balance as of July 31. On July 31, the company’s Cash account has a $25,658 debit balance, but its July bank statement shows a $27,216 cash balance. Check Number 3031 for $1,190, Check Number 3065 for $371, and Check Number 3069 for $1,958 are outstanding checks as of July 31. Check Number 3056 for July rent expense was correctly written and drawn for $1,230 but was erroneously entered in the accounting records as $1,220. The July bank statement shows the bank collected $9,500 cash on a note for Branch. Branch had not recorded this event before receiving the statement. The bank statement shows an $805 NSF check. The check had been received from a customer, Evan Shaw. Branch has not yet recorded this check as NSF. The July statement shows a $14 bank service charge. It has not yet been recorded in miscellaneous expenses because no previous…
Required information [The following information applies to the questions displayed below.] The following information is available to reconcile Branch Company's book balance of cash with its bank statement cash balance as of July 31. a. On July 31, the company's Cash account has a $25,672 debit balance, but its July bank statement shows a $27,829 cash balance. b. Check No. 3031 for $1,430, Check No. 3065 for $491, and Check No. 3069 for $2,198 are outstanding checks as of July 31. c. Check No. 3056 for July rent expense was correctly written and drawn for $1,240 but was erroneously entered in the accounting records as $1,230. d. The July bank statement shows the bank collected $10,000 cash on a note for Branch. Branch had not recorded this event before receiving the statement. e. The bank statement shows an $805 NSF check. The check had been received from a customer, Evan Shaw. Branch has not yet recorded this check as NSF. f. The July statement shows a $15 bank service charge. It has…