Ask Question
28 July, 23:00

Nolan Company's cash account shows a $22,352 debit balance and its bank statement shows $21,332 on deposit at the close of business on June 30. Outstanding checks as of June 30 total $3,713. The June 30 bank statement lists $41 in bank service charges; the company has not yet recorded the cost of these services. In reviewing the bank statement, a $90 check written by the company was mistakenly recorded in the company's books as $99. June 30 cash receipts of $4,724 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 $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

+2
Answers (1)
  1. 28 July, 23:27
    0
    bank reconciliation:

    bank statement balance $21,332

    + deposits in transit $4,724

    - outstanding checks $3,713

    reconciled bank account = $22,343

    cash account balance reconciliation:

    cash account balance $22,352

    + error in recording check $9

    + interests earned $23

    - bank fees $41

    reconciled cash account $22,343
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Nolan Company's cash account shows a $22,352 debit balance and its bank statement shows $21,332 on deposit at the close of business on June ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers