FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Nakajima Co. for July: 1 Cash balance according to the company's records at July 31, $24,640. 2 Cash balance according to the bank statement at July 31, $25,940. 3 Checks outstanding, $5,000. 4 Deposit in transit, not recorded by bank, $4,020. 5 A check for $590 issued in payment of an account was erroneously recorded in the check register as $950. 6 Bank debit memo for service charges, $40. a.  Prepare a bank reconciliation, using the format shown in Exhibit 12. Nakajima Co. Bank Reconciliation July 31 Cash balance according to bank statement $ fill in the blank 253cf5010032f9d_1   fill in the blank 253cf5010032f9d_3   fill in the blank 253cf5010032f9d_5 Adjusted balance $ fill in the blank 253cf5010032f9d_6 Cash balance according to company's records $ fill in the blank 253cf5010032f9d_7   fill in the blank 253cf5010032f9d_9   fill in the blank 253cf5010032f9d_11 Adjusted balance $ fill in the blank 253cf5010032f9d_12 b.  If the balance sheet is prepared for Nakajima Co. on July 31, what amount should be reported for cash? $ fill in the blank 47cf9ffb006106a_1 c.  Must a bank reconciliation always balance (reconcile)?
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a)

Nakajima Co. Bank Reconciliation July 31

 

Cash balance according to the bank statement                                 $25,940

Add: Deposit in transit                                                                          $4,020

Deduct : Outstanding checks                                                               $5,000

Adjusted  Balance                                                                           $24,960

Cash balance according to the company's records                            $24,640

Add : Error on check                                                                                $360

Deduct: Service charges                                                                            $40

Adjusted  Balance                                                                            $24,960

          

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