. Reconciling items are listed on sides of the reconciliation. In-class Exercise #2 - Preparation of a Bank Reconciliation (from Fundamental Accounting Principles, Wild, Shaw and Chiappetta, 21" ed) side of the reconciliation. They are NEVER listed on both 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 $22,352 debit balance. Nolan's June 30 bank statement shows $21,332 on deposit in the bank. Prepare a bank reconciliation for the Company using the following information. 1. Outstanding checks as of June 30 total $3,713. 2. The June 30 bank statement included a $41 debit memorandum for bank services; the company has not yet recorded the cost of these services. 3. In reviewing the bank statement, a $90 check written by the Company to pay the telephone bill was mistakenly recorded in the company's books at $99. 4. 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. 5. The bank statement included a $23 credit for interest earned on the cash in the bank. Balance per Bank Nolan Company Bank Reconciliation As of June 30 O o Urge Prepare the required journal entries and post them to the Cash general ledger account: Internal Control System Policies and procedures managers use to: o Protect Ensure Promote Balance per Books accounting. operations. to company policies. CASH Page 4 of 5

- Reconciling items are listed on sides of the reconciliation. side of the reconciliation. They are NEVER listed on both aivpertio, 21= - eal 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 \$22,352 debit balance. Nolan's June 30 bank statement shows $21,332 on deposit in the bank. Prepare a bank reconciliation for the Company using the following information. 1. Outstanding checks as of June 30 total $3,713. 2. The June 30 bank statement included a $41 debit memorandum for bank services; the company has not yet recorded the cost of these services: 3. In reviewing the bank statement, a $90 check written by the Company to pay the telephone bill was mistakenly recorded in the company's books at $99. 4. 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. 5. The bank statement included a $23 credit for interest camed on the cash in the bank. Prepare the required journal entries and post them to the Cash general ledger account: Internal Control System - Policies and procedures managers use to: Protect Ensure accounting. Promote operations. Urge to company policies