The following data were accumulated for use in reconciling the bank account of Nakajima Co. for July: Cash balance according to the company's records at July 31, $49,910. Cash balance according to the bank statement at July 31, $48,250. Checks outstanding, $4,460. Deposit in transit, not recorded by bank, $6,450. A check for $590 issued in payment of an account was erroneously recorded in the check register as $950.
The following data were accumulated for use in reconciling the bank account of Nakajima Co. for July: Cash balance according to the company's records at July 31, $49,910. Cash balance according to the bank statement at July 31, $48,250. Checks outstanding, $4,460. Deposit in transit, not recorded by bank, $6,450. A check for $590 issued in payment of an account was erroneously recorded in the check register as $950.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The following data were accumulated for use in reconciling the bank account of Nakajima Co. for July:
- Cash balance according to the company's records at July 31, $49,910.
- Cash balance according to the bank statement at July 31, $48,250.
- Checks outstanding, $4,460.
- Deposit in transit, not recorded by bank, $6,450.
- A check for $590 issued in payment of an account was erroneously recorded in the check register as $950.
- Bank debit memo for service charges, $30.
Question Content Area
a. Prepare a bank reconciliation, using the format shown in Exhibit 12.
| Cash balance according to bank statement | $fill in the blank 8740c9ff3f91023_1 |
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|
- Select - |
|
|
- Select - |
| Adjusted balance | $fill in the blank 8740c9ff3f91023_6 |
| Cash balance according to company's records | $fill in the blank 8740c9ff3f91023_7 |
|
|
- Select - |
|
|
- Select - |
| Adjusted balance | $fill in the blank 8740c9ff3f91023_12 |
Question Content Area
b. If the
$fill in the blank 60bcf3037fe0031_1
c. Must a bank reconciliation always balance (reconcile)?
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