Nolan Company's cash account shows a $20,059 debit balance and its bank statement shows $19,742 on deposit at the close of business on June 30. a. Outstanding checks as of June 30 total $2,595. b. The June 30 bank statement lists $30 in bank service charges; the company has not yet recorded the cost of these services. c. In reviewing the bank statement, a $30 check written by the company was mistakenly recorded in the company's books as $39. d. June 30 cash receipts of $2,917 were placed in the bank's night depository after banking hours and were not recorded on the June 30 bank statement. e. The bank statement included a $26 credit for interest earned on the company's cash in the bank. The company has not yet recorded interest earned. Prepare a bank reconciliation using the above information.
Nolan Company's cash account shows a $20,059 debit balance and its bank statement shows $19,742 on deposit at the close of business on June 30. a. Outstanding checks as of June 30 total $2,595. b. The June 30 bank statement lists $30 in bank service charges; the company has not yet recorded the cost of these services. c. In reviewing the bank statement, a $30 check written by the company was mistakenly recorded in the company's books as $39. d. June 30 cash receipts of $2,917 were placed in the bank's night depository after banking hours and were not recorded on the June 30 bank statement. e. The bank statement included a $26 credit for interest earned on the company's cash in the bank. The company has not yet recorded interest earned. Prepare a bank reconciliation using the above information.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Nolan Company's cash account shows a $20,059 debit balance and its bank statement shows $19,742 on deposit at the close of
business on June 30.
a. Outstanding checks as of June 30 total $2,595.
b. The June 30 bank statement lists $30 in bank service charges; the company has not yet recorded the cost of these services.
c. In reviewing the bank statement, a $30 check written by the company was mistakenly recorded in the company's books as $39.
d. June 30 cash receipts of $2,917 were placed in the bank's night depository after banking hours and were not recorded on the June
30 bank statement.
e. The bank statement included a $26 credit for interest earned on the company's cash in the bank. The company has not yet
recorded interest earned.
Prepare a bank reconciliation using the above information.
NOLAN COMPANY
Bank Reconciliation
June 30
Bank statement balance
Book balance
Add:
Add:
Deduct:
Deduct:
Adjusted bank balance
Adjusted book balance
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