Effects of Bank Reconciliation Updates

Accompanying a bank statement for Nite Lighting Company is a credit memo for $$61,155,$ representing the principal $($ $$51,982)$ and interest $($ $$9,173)$ on a note that had been collected by the bank

company had been notified by the bank at the time of the collection but had made no recording.

Record the financial statement effect for the adjustment that should be made by the company to bring the accounting records up to date.

If no account or activity is affected, select $"$No effect" from the dropdown and leave the corresponding number entry box blank. Enter account decreases and cash outflows as

negative amounts.

Financial Statement Effects

Balance Sheet

Statement of Cash Flows