Nickleson Company had an unadjusted cash balance of $4,304 as of May 31. The company's bank statement, also dated May 31, included a $68 NSF check written by one of Nickleson's customers. There were $660 in outstanding checks and $205 in deposits in transit as of May 31. According to the bank statement, service charges were $30, and the bank collected an $1,100 note receivable for Nickleson. The bank statement also showed $5 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
Nickleson Company had an unadjusted cash balance of $4,304 as of May 31. The company's bank statement, also dated May 31, included a $68 NSF check written by one of Nickleson's customers. There were $660 in outstanding checks and $205 in deposits in transit as of May 31. According to the bank statement, service charges were $30, and the bank collected an $1,100 note receivable for Nickleson. The bank statement also showed $5 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Meman
Transcribed Image Text:Nickleson Company had an unadjusted cash balance of $4,304 as of May 31. The company's bank statement, also dated May 31,
included a $68 NSF check written by one of Nickleson's customers. There were $660 in outstanding checks and $205 in deposits in
transit as of May 31. According to the bank statement, service charges were $30, and the bank collected an $1,100 note receivable for
Nickleson. The bank statement also showed $5 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.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
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.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