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 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

Answer 1

Answer:

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