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Nolan Company's cash account shows a $22,352 debit balance and its bank statement shows $21,332 on deposit at the close of business on June
Nolan Company's cash account shows a $22,352 debit balance and its bank statement shows $21,332 on deposit at the close of business on June 30. a. Outstanding checks as of June 30 total $3,713. b. The June 30 bank statement lists $41 in bank service charges; the company has not yet recorded the cost of these services. c. In reviewing the bank statement, a $90 check written by the company was mistakenly recorded in the company's books as $99. d. June 30 cash receipts of $4,724 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 $23 credit for interest earned on the company's cash in the bank. The company has not yet recorded interest earned. Prepare a bank reconciliation using the above information. Bank statement balance Add: Answer is not complete. NOLAN COMPANY Bank Reconciliation June 30 $ 21,332 Book balance Add: Deposit of June 30 $ 21,332 x Recording error on check 9 Interest earned 23 21,364 42,696 Deduct: Deduct: Outstanding checks Bank service charges Adjusted bank balance 0 0 3,713 41 3,754 0 $ 38,942 Adjusted book balance $ 0
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