Nickleson Company had an unadjusted cash balance of $5,632 as of May 31. The company's bank statement, also dated May 31, included an NSF check in the amount of $94 written by one of Nickleson's customers. There were $1,000 in outstanding checks and $255 in deposits in transit as of May 31. According to the bank statement, service charges were $60, and the bank collected a note receivable of $800 for Nickleson. The bank statement also showed $11 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 $5,632 as of May 31. The company's bank statement, also dated May 31, included an NSF check in the amount of $94 written by one of Nickleson's customers. There were $1,000 in outstanding checks and $255 in deposits in transit as of May 31. According to the bank statement, service charges were $60, and the bank collected a note receivable of $800 for Nickleson. The bank statement also showed $11 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
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Transcribed Image Text:Nickleson Company had an unadjusted cash balance of $5,632 as of May 31. The company's bank statement, also dated May 31,
included an NSF check in the amount of $94 written by one of Nickleson's customers. There were $1,000 in outstanding checks and
$255 in deposits in transit as of May 31. According to the bank statement, service charges were $60, and the bank collected a note
receivable of $800 for Nickleson. The bank statement also showed $11 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
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