Question

Nolan Company's cash account shows a $29,748 debit balance and its bank statement shows $29,761 on deposit at the close of business on June 30. a. Outstanding checks as of June 30 total $2,090. b. The June 30 bank statement lists $40 in bank service charges; the company has not yet recorded the cost of these services. c. In reviewing the bank statement, a $70 check written by the company was mistakenly recorded in the company's books as $79. d. June 30 cash receipts of $2,084 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 $38 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. NOLAN COMPANY Bank Reconciliation June 30 $ 29,748 Book balance Add: Bank statement balance Add: Deposit of June 30 $ 29,761 0 29,761 59,509 0 Deduct: Deduct: 0 0 $ 59,509 Adjusted book balance Adjusted bank balance HA 0

Answer 1

NOLAN COMPANY
Bank Reconciliation
Jun-30
Bank Statement Balance		29,761	Book Balance		29,748
Add:			Add:
Deposit in Transit (d)	2,084
			Interest Received (e)	38
			Error in recoding Check ( c)	9
Deduct:			Deduct:
Outstanding Checks (a)	2,090		Bank Service Charges (b)	40
Adjusted Bank Balance		29,755	Adjusted Book Balance		29,755