The following data were accumulated for use in reconciling the bank account of Nakajima Co. for July: Cash balance according to the company's records at July 31, $49,910. Cash balance according to the bank statement at July 31, $48,250. Checks outstanding, $4,460. Deposit in transit, not recorded by bank, $6,450. A check for $590 issued in payment of an account was erroneously recorded in the check register as $950. Bank debit memo for service charges, $30. a. Prepare a bank reconciliation, using the format shown in Exhibit 12. Nakajima Co.Bank ReconciliationJuly 31 Cash balance according to bank statement $fill in the blank eca92700cf91005_1 - Select one of 1-6 - Select one of 1-6 Adjusted balance $ Cash balance according to company's records $ - Select one of 1-6 - Select one of 1-6 Adjusted balance $ b. If the balance sheet is prepared for Nakajima Co. on July 31, what amount should be reported for cash? $ c. Must a bank reconciliation always balance (reconcile)?
The following data were accumulated for use in reconciling the bank account of Nakajima Co. for July: Cash balance according to the company's records at July 31, $49,910. Cash balance according to the bank statement at July 31, $48,250. Checks outstanding, $4,460. Deposit in transit, not recorded by bank, $6,450. A check for $590 issued in payment of an account was erroneously recorded in the check register as $950. Bank debit memo for service charges, $30. a. Prepare a bank reconciliation, using the format shown in Exhibit 12. Nakajima Co.Bank ReconciliationJuly 31 Cash balance according to bank statement $fill in the blank eca92700cf91005_1 - Select one of 1-6 - Select one of 1-6 Adjusted balance $ Cash balance according to company's records $ - Select one of 1-6 - Select one of 1-6 Adjusted balance $ b. If the balance sheet is prepared for Nakajima Co. on July 31, what amount should be reported for cash? $ c. Must a bank reconciliation always balance (reconcile)?
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter8: Sarbanes-oxley, Internal Control, And Cash
Section: Chapter Questions
Problem 18E
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Question
The following data were accumulated for use in reconciling the bank account of Nakajima Co. for July:
- Cash balance according to the company's records at July 31, $49,910.
- Cash balance according to the bank statement at July 31, $48,250.
- Checks outstanding, $4,460.
- Deposit in transit, not recorded by bank, $6,450.
- A check for $590 issued in payment of an account was erroneously recorded in the check register as $950.
- Bank debit memo for service charges, $30.
a. Prepare a bank reconciliation, using the format shown in Exhibit 12.
| Cash balance according to bank statement | $fill in the blank eca92700cf91005_1 |
|
|
- Select one of 1-6 |
|
|
- Select one of 1-6 |
| Adjusted balance | $ |
| Cash balance according to company's records | $ |
|
|
- Select one of 1-6 |
|
|
- Select one of 1-6 |
| Adjusted balance | $ |
b. If the balance sheet is prepared for Nakajima Co. on July 31, what amount should be reported for cash?
$
c. Must a bank reconciliation always balance (reconcile)?
Expert Solution
Step 1
A bank reconciliation statement is a statement that adds or subtracts the differences between the balance in the bank account in the books of accounts and the balance in the bank statement.
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