Nickleson Company had an unadjusted cash balance of $7,750 as of May 31. The company's bank statement, also dated May 31, included a $72 NSF check written by one of Nickleson's customers. There were $800 in outstanding checks and $950 in deposits in transit as of May 31. According to the bank statement, service charges were $50, and the bank collected an $800 note receivable for Nickleson. The bank statement also showed $13 of interest revenue earned by Nickleson. Page 348 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.)
Nickleson Company had an unadjusted cash balance of $7,750 as of May 31. The company's bank statement, also dated May 31, included a $72 NSF check written by one of Nickleson's customers. There were $800 in outstanding checks and $950 in deposits in transit as of May 31. According to the bank statement, service charges were $50, and the bank collected an $800 note receivable for Nickleson. The bank statement also showed $13 of interest revenue earned by Nickleson. Page 348 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![**LO 6-3**
**Exercise 6-12A**
*Determining the true cash balance, starting with the unadjusted book balance*
Nickleson Company had an unadjusted cash balance of $7,750 as of May 31. The company's bank statement, also dated May 31, included a $72 NSF check written by one of Nickleson’s customers. There were $800 in outstanding checks and $950 in deposits in transit as of May 31. According to the bank statement, service charges were $50, and the bank collected an $800 note receivable for Nickleson. The bank statement also showed $13 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.)*](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd3a987bf-785c-401c-8983-187962163321%2F8772377f-9629-45f9-a2bf-28171a5daaae%2Fhx2hnu_processed.png&w=3840&q=75)
Transcribed Image Text:**LO 6-3**
**Exercise 6-12A**
*Determining the true cash balance, starting with the unadjusted book balance*
Nickleson Company had an unadjusted cash balance of $7,750 as of May 31. The company's bank statement, also dated May 31, included a $72 NSF check written by one of Nickleson’s customers. There were $800 in outstanding checks and $950 in deposits in transit as of May 31. According to the bank statement, service charges were $50, and the bank collected an $800 note receivable for Nickleson. The bank statement also showed $13 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.)*
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