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Nolan Company's cash account shows a $29,833 debit balance and its bank statement shows $30,002 on deposit at the close of business on June 30. a. Outstanding checks as of June 30 total $2,426. b. The June 30 bank statement lists $28 in bank service charges; the company has not yet recorded the cost of these services. c. In reviewing the bank statement, a $40 check written by the company was mistakenly recorded in the company's books as $49. d. June 30 cash receipts of $2,261 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 $23 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 $29,833 debit balance and its bank statement shows $30,002 on deposit at the close of business on June 30. a. Outstanding checks as of June 30 total $2,426. b. The June 30 bank statement lists $28 in bank service charges; the company has not yet recorded the cost of these services. c. In reviewing the bank statement, a $40 check written by the company was mistakenly recorded in the company's books as $49. d. June 30 cash receipts of $2,261 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 $23 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

FINANCIAL ACCOUNTING
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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Nolan Company's cash account shows a $29,833 debit balance and its bank statement shows $30,002 on deposit at the close of business on June 30. a. Outstanding checks as of June 30 total $2,426. b. The June 30 bank statement lists $28 in bank service charges; the company has not yet recorded the cost of these services. c. In reviewing the bank statement, a $40 check written by the company was mistakenly recorded in the company’s books as $49. d. June 30 cash receipts of $2,261 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 $23 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** | | --- In this table, you will need to fill out the adjustments to reconcile the bank statement balance with the book balance. Use the provided information (a-e) to make the necessary additions and deductions on respective sides.
Transcribed Image Text:Nolan Company's cash account shows a $29,833 debit balance and its bank statement shows $30,002 on deposit at the close of business on June 30. a. Outstanding checks as of June 30 total $2,426. b. The June 30 bank statement lists $28 in bank service charges; the company has not yet recorded the cost of these services. c. In reviewing the bank statement, a $40 check written by the company was mistakenly recorded in the company’s books as $49. d. June 30 cash receipts of $2,261 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 $23 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** | | --- In this table, you will need to fill out the adjustments to reconcile the bank statement balance with the book balance. Use the provided information (a-e) to make the necessary additions and deductions on respective sides.
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