Question
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)?
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