Nickleson Company had an unadjusted cash balance of $8,516 as of May 31. The company's bank statement, also dated May 31, included a $99 NSF check written by one of Nickleson's customers. There were $600 in outstanding checks and $225 in deposits in transit as of May 31. According to the bank statement, service charges were $80, and the bank collected an $650 note receivable for Nickleson. The bank statement also showed $20 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 $8,516 as of May 31. The company's bank statement, also dated May 31, included a $99 NSF check written by one of Nickleson's customers. There were $600 in outstanding checks and $225 in deposits in transit as of May 31. According to the bank statement, service charges were $80, and the bank collected an $650 note receivable for Nickleson. The bank statement also showed $20 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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

Question

Note:- • Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. • Answer completely. • You will get up vote for sure.

Nickleson Company had an unadjusted cash balance of $8,516 as of May 31. The
company's bank statement, also dated May 31, included a $99 NSF check written by
one of Nickleson's customers. There were $600 in outstanding checks and $225 in
deposits in transit as of May 31. According to the bank statement, service charges
were $80, and the bank collected an $650 note receivable for Nickleson. The bank
statement also showed $20 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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