The following data were accumulated for use in reconciling the bank account of Nakajima Co. for July: 1. Cash balance according to the company's records at July 31, $16,200. 2. Cash balance according to the bank statement at July 31, $17,240. 3. Checks outstanding, $3,290. 4. Deposit in transit, not recorded by bank, $2,640. 5. A check for $270 issued in payment of an account was erroneously recorded in the check register as $720. 6. Bank debit memo for service charges, $60. a. Prepare a bank reconciliation, using the format shown in Exhibit 12. Nakajima Co. Bank Reconciliation July 31 Cash balance according to bank statement Adjusted balance Cash balance according to company's records $ Adjusted balance b. If the balance sheet is prepared for Nakajima Co. on July 31, what amount should be reported for cash? c. Must a bank reconciliation always balance (reconcile)?

The following data were accumulated for use in reconciling the bank account of Nakajima Co. for July: 1. Cash balance according to the company's records at July 31, $16,200. 2. Cash balance according to the bank statement at July 31, $17,240. 3. Checks outstanding, $3,290. 4. Deposit in transit, not recorded by bank, $2,640. 5. A check for $270 issued in payment of an account was erroneously recorded in the check register as $720. 6. Bank debit memo for service charges, $60. a. Prepare a bank reconciliation, using the format shown in Exhibit 12. Nakajima Co. Bank Reconciliation July 31 Cash balance according to bank statement Adjusted balance Cash balance according to company's records $ Adjusted balance b. If the balance sheet is prepared for Nakajima Co. on July 31, what amount should be reported for cash? c. Must a bank reconciliation always balance (reconcile)?

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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