Nolan Company's cash account shows a $24,625 debit balance and its bank statement shows $23,541 on deposit at the close of business on June 30. a. Outstanding checks as of June 30 total $2.894. b. The June 30 bank statement lists $27 In bank service charges; the company has not yet recorded the cost of these services. c In reviewing the bank statement, a $70 check written by the company was mistakenly recorded in the company's books as $79. d. June 30 cash receipts of $3.982 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 $22 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
Nolan Company's cash account shows a $24,625 debit balance and its bank statement shows $23,541 on deposit at the close of business on June 30. a. Outstanding checks as of June 30 total $2.894. b. The June 30 bank statement lists $27 In bank service charges; the company has not yet recorded the cost of these services. c In reviewing the bank statement, a $70 check written by the company was mistakenly recorded in the company's books as $79. d. June 30 cash receipts of $3.982 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 $22 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:**Bank Reconciliation: Nolan Company**
Nolan Company's cash account shows a $24,625 debit balance and its bank statement shows $23,541 on deposit at the close of business on June 30.
a. Outstanding checks as of June 30 total $2,894.
b. The June 30 bank statement lists $27 in bank service charges; the company has not yet recorded the cost of these services.
c. In reviewing the bank statement, a $70 check written by the company was mistakenly recorded in the company’s books as $79.
d. June 30 cash receipts of $3,982 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 $22 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 |
|----------------------------|------------------------|--------------------|
| | $23,541 | $24,625 |
| **Add:** | | |
| Deposits in transit | $3,982 | |
| Error in check | | $9 ($79 - $70) |
| Interest earned | | $22 |
| | **Total:** | |
| **Deduct:** | | |
| Outstanding checks | $2,894 | |
| Bank service charges | | $27 |
| | **Total:** | |
| **Adjusted balances:** | | |
| **Adjusted bank balance** | $24,629 | |
| **Adjusted book balance** | | $24,629 |
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