Question

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, 2017, 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 included a $27 debit memorandum for bank services, 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 cash in the bank Prepare a bank reconciliation for Nolan Company using the above information NOLAN COMPANY Bank Reconciliation June 30, 2017 Book balance Bank statement balance Add Add

Answer 1

Bank Reconciliation

June 30,2017

Bank Statement Balance		24845	Book balance		24767
Add: Deposit in transit	2405		Add: Interest revenue	33
			Add: Error in Check	9
		2405			42
Less: Outstanding Check	-2468		Less: Bank Charge	-27
		-2468			-27
Adjusted balance		24782	Adjusted balance		24782