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

Question

Nolan Company deposits all cash receipts on the day when they are received and it makes all cash payments by check. At the close o business on June 30, 2017, its Cash account shows a $22.906 debit balance. Nolan's June 30 bank statement shows $21,905 on deposit in the bank. a. Outstanding checks as of June 30 total $2,068. b. The June 30 bank statement included a $40 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. were placed in the bank's night depository after banking hours and were not recorded on the June 3 bank statement. e. The bank statement included a $26 credit for interest earned on the cash in the bank. Prepare a bank reconciliation for Nolan Company using the above information. NOLAN COMPANY Bank Reconciliation June 30, 2017 Bank statement balance Add: Book balance Add: Deduct: Deduct: Adjusted bank balance Adjusted book balance

Explanation / Answer

Nolan company Bank Reconciliation Bank Statement balance 21,905 book balance 22,906 Add: Add: deposits in transit 3,064 error in recording 9 3,064 interest earned 26 35 24,969 22,941 Deduct: Deduct: Checks outstanding 2,068 bank service charge 40 2,068 40 Adjusted bank balance 22,901 Adjusted book balance 22,901

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