Nolan Company's cash account shows a $21,268 debit balance and its bank statement shows $19,711 on deposit at the close of business on June 30. Outstanding checks as of June 30 total $2,231. The June 30 bank statement lists $27 in bank service charges; the company has not yet recorded the cost of these services. In reviewing the bank statement, a $50 check written by the company was mistakenly recorded in the company's books as $59. June 30 cash receipts of $3,801 were placed in the bank's night depository after banking hours and were not recorded on the June 30 bank statement. The bank statement included a $31 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.

Question

Candy

Business

10 September, 06:13

Nolan Company's cash account shows a $21,268 debit balance and its bank statement shows $19,711 on deposit at the close of business on June 30. Outstanding checks as of June 30 total $2,231. The June 30 bank statement lists $27 in bank service charges; the company has not yet recorded the cost of these services. In reviewing the bank statement, a $50 check written by the company was mistakenly recorded in the company's books as $59. June 30 cash receipts of $3,801 were placed in the bank's night depository after banking hours and were not recorded on the June 30 bank statement. The bank statement included a $31 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.

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Jasmine Mooney · Answer 1

Balance at Bank as per the Cash Book $21,250

Add Unpresented Checks:

Outstanding checks $2,231

Less Lodgements not yet credited:

Cash Receipts - Night Depository ($3,801)

Balance as per Bank Satement $20,400

Explanation:

First bring the Cash book up to date:

Cash Book Bank Balanace

Debits:

Bank Balance as of June 30 $21,268

Error - Overstated Check $9

Totals 21,277

Interest earned $31

Credits:

Bank service charges $27

Balance (Up to Date) $21,250

Totals $21,277

Then, Prepare the Bank Reconciliation Statement:

Balance at Bank as per the Cash Book $21,250

Add Unpresented Checks:

Outstanding checks $2,231

Less Lodgements not yet credited:

Cash Receipts - Night Depository ($3,801)

Balance as per Bank Satement $20,400