Question

Nolan Company's cash account shows a $29,193 debit balance and its bank statement shows $28,152 on deposit at the close of business on June 30. Outstanding checks as of June 30 total $2,801. The June 30 bank statement lists $32 in bank service charges; the company has not yet recorded the cost of these services. In reviewing the bank statement, a $80 check written by the company was mistakenly recorded in the company’s books as $89. June 30 cash receipts of $3,853 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 $34 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

Step-by-step explanation:

Bank reconciliation is practice of reconciling the bank account balance in a company's book to the balance reported by the bank i order to discover and correct any discrepancy

Workings

Bank reconciliation for Nolan for the month of June

Bank statement balance 28,152

Add bank deposit 3,853 3853

32,005

Less outstanding check (2801) (2801)

29,204

Cash book balance 29,193

Add back error in check (89-80) 9

Interest Earned 34 43

29,236

Less bank charges 32 (32)

29,204