The following information pertains to the Cash account of the Nakamoto Corporation for the month of July
Question:
Bank statement
Balance July 31 ......................... $22,639.54
Service charge for July ..................... 15.00
NSF check returned with July bank statement ............ 184.50
Note receivable collected by bank (not previously recorded on the books).. 2,000.00
Interest on note collected by bank (not previously recorded on the books) .. 60.00
Books
Balance July 31 ......................... ?
Cash on hand awaiting deposit ................... 1,824.42
Outstanding checks:
#257 $42.17
#271 $120.19
#272 $80.82
Deposit in transit ........................ 2,420.98
Required
1. Prepare a bank reconciliation to determine Nakamoto’s adjusted cash balance on July 31, 2007.
2. Determine Nakamoto’s unadjusted cash balance (per books) on July 31, 2007.
3. Prepare the adjusting entries necessary to bring Nakamoto’s cash account balance up to date on July 31, 2007.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
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