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 of business on June 30, 2017, its Cash account shows a $20,059 debit balance. Nolan’s June 30 bank statement shows $19,742 on deposit in the bank.

Outstanding checks as of June 30 total $2,595.

The June 30 bank statement included a $30 debit memorandum for bank services; the company has not yet recorded the cost of these services.

In reviewing the bank statement, a $30 check written by the company was mistakenly recorded in the company’s books at $39.

June 30 cash receipts of $2,917 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 $26 credit for interest earned on the cash in the bank.

Prepare a bank reconciliation for Nolan Company using the above information

6 a·Outstanding checks as of June 30 total $2,595. b. The June 30 bank statement included a $30 debit memorandum for bank services; the company has not yet recorded the cost of these services. c. In reviewing the bank statement, a $30 check written by the company was mistakenly recorded in the company's books at $39. d. June 30 cash receipts of $2,917 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 $26 credit for interest earned on the cash in the bank. Print Prepare a bank reconciliation for Nolan Company using the above information NOLAN COMPANY Bank Reconciliation June 30, 2017 Bank statement balance Book balance Add Add Deduct Deduct: Adjusted bank balance Adjusted book balance

Explanation / Answer

NOLAN COMPANY Bank Reconciliation Statement for June 30 2017 Particulars Amount Amount Balance as per Book (A) $20,059.00 Add: Outstanding Cheques $2,595.00 Wronly recorded of Cheque ($ 39 - $ 30 ) $9.00 Interested credited by bank not recorded in books $26.00 Total of Addition (B) $2,630.00 Total (C = A + B) $22,689.00 Less: Deposit but Not recorded in bank $2,917.00 Bank charges not taken in the books $30.00 D = Total of Deuctible $2,947.00 Balance as per bank Statement (C+D) $19,742.00 NOLAN COMPANY Bank Reconciliation Statement for June 30 2017 Particulars Amount Amount Balance as per Bank Statement (A) $19,742.00 Add: Deposit but Not recorded in bank $2,917.00 Bank charges not taken in the books $30.00 Total of Addition (B) $2,947.00 Total (C = A + B) $22,689.00 Less: Outstanding Cheques $2,595.00 Wronly recorded of Cheque ($ 39 - $ 30 ) $9.00 Interested credited by bank not recorded in books $26.00 D = Total of Deuctible $2,630.00 Balance as per Book Balance (C+D) $20,059.00

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