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)?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![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)?
%24](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5009a5f7-cb0c-44c8-a915-95d249ae3d2b%2Fce95f5cc-92ae-4904-afbf-db00b6482823%2Fr97pvh8_processed.png&w=3840&q=75)
Transcribed Image Text: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)?
%24
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