< 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, $22,680. 2. Cash balance according to the bank statement at July 31, $23,910. 3. Checks outstanding, $4,600. 4. Deposit in transit, not recorded by bank, $3,700. 5. A check for $590 issued in payment of an account was erroneously recorded in the check register as $950. 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 Adjusted balance Cash balance according to company's records Adjusted balance 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)?
< 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, $22,680. 2. Cash balance according to the bank statement at July 31, $23,910. 3. Checks outstanding, $4,600. 4. Deposit in transit, not recorded by bank, $3,700. 5. A check for $590 issued in payment of an account was erroneously recorded in the check register as $950. 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 Adjusted balance Cash balance according to company's records Adjusted balance 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)?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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, $22,680.
2. Cash balance according to the bank statement at July 31, $23,910.
3. Checks outstanding, $4,600.
4. Deposit in transit, not recorded by bank, $3,700.
5. A check for $590 issued in payment of an account was erroneously recorded in the check register as $950.
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
Adjusted balance
Cash balance according to company's records
Adjusted balance
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)?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education