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Bank reconciliation The following data were accumulated for use in reconciling the bank account of Nakajima Co. for July: 1) Cash balance according to he

Bank reconciliation

The following data were accumulated for use in reconciling the bank account of Nakajima Co. for July:

1) Cash balance according to he company's records at July 31, $49,910.

2) Cash balance according to the bank statement at July 31, $48,250.

3) Check outstanding, $4,460.

4) deposit in transit, not recorded by bank, $6,450.

5) A check for $590 issued in payment for an account was erroneously recorded in the check register as $950.

6) Bank debit memo for service charges, $30.

a) Make a bank reconciliation, using the format shown in exhibit 12.

b) If the balance sheet is prepared for Nakajima Co. on July 31, What amount should be reported for cash?

c) Must a bank reconciliation always balance (reconcile)?

image text in transcribed
Bank Section EXHIBIT 12 Cash balance according to bank $XXX Bank Reconciliation Add: Debits to cash not on bank statement Format (deposits in transit, etc.) $ XXX Deduct: Credits to cash not on bank statement (outstanding checks, etc.) (XXX) XXX Adjusted balance $XXX Company Section Cash balance according to company $XXX Must be Add: Unrecorded bank credits (notes collected equal. by bank) $ XXX Deduct: Unrecorded bank debits (NSF checks, service charges, etc.) (XXX) XXX Adjusted balance $XXX

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