Question

Nolan Company's cash account shows a $29,833 debit balance and its bank statement shows $30,002 on deposit at the close of business on June 30. Outstanding checks as of June 30 total $2,426. The June 30 bank statement lists $28 in bank service charges; the company has not yet recorded the cost of these services. In reviewing the bank statement, a $40 check written by the company was mistakenly recorded in the company's books as $49. June 30 cash receipts of $2,261 were placed in the bank's night depository after banking hours and were not recorded on the June 30 bank statement. 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.

Answer 1

cash account balance= $29,833

- bank service charges = ($28)

error in recording check = $9

interests earned = $23

reconciled cash account = $29,837

bank account balance = $30,002

- outstanding checks = ($2,426)

deposits in transit = $2,261

reconciled bank account = $29,837

Both reconciled accounts match, so we did it correctly.