chapter 6. practice

Check my word 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, its Cash account shows a $24,767 debit balance. Nolan's June 30 bank statement shows $24,845 on deposit in the bank. a. Outstanding checks as of June 30 total $2,468. b. The June 30 bank statement lists $27 in bank service charges; the company has not yet recorded the cost of these services. c. In reviewing the bank statement, a $50 check written by the company was mistakenly recorded in the company's books at $59. d. June 30 cash receipts of $2,405 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 $33 credit for interest earned on the company's cash in the bank. Prepare a bank reconciliation for Nolan Company using the above information. NOLAN COMPANY Bank Reconciliation June 30 Book balance Add: Bank statement balance Add: Deduct Deduct: