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 $700 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 a $800 note recelvable 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 determlne the true balance.) True cash balance

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 $700 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 a $800 note recelvable 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 determlne the true balance.)
True cash balance
Transcribed Image Text: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 $700 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 a $800 note recelvable 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 determlne the true balance.) True cash balance
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