Nolan Company deposits all cash receipts on the day when they are received and it makes all

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Nolan Company deposits all cash receipts on the day when they are received and it makes all cash payments by check. At the close of business on June 30, 2013, its Cash account shows an $ 22,352 debit balance. Nolan’s June 30 bank statement shows $ 21,332 on deposit in the bank. Prepare a bank reconciliation for the Company using the following information.
a. Outstanding checks as of June 30 total $ 3,713.
b. The June 30 bank statement included a $ 41 debit memorandum for bank services; the company has not yet recorded the cost of these services.
c. In reviewing the bank statement, a $ 90 check written by the Company was mistakenly recorded in the company’s books at $ 99.
d. 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.
e. The bank statement included a $ 23 credit for interest earned on the cash in the bank.

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Fundamental accounting principle

ISBN: 978-0078025587

21st edition

Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta

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