Bank Reconciliation 1. ns, currency (paper money), checks, money orders, and money on deposit that...
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Bank Reconciliation 1. ns, currency (paper money), checks, money orders, and money on deposit that is available for unrestricted withdrawal from banks and other financial institutions. Cash balance according to the company's records at July 31, $23,270. 2. Cash balance according to the bank statement at July 31, $24,510. 3. Checks outstanding, $4,720. 4. Deposit in transit, not recorded by bank, $3,790. 5. A check for $480 issued in payment of an account was erroneously recorded in the check register as $840. 6. Bank debit memo for service charges, $50. a. Prepare a bank reconciliation, using the format shown in Exhibit 12. Nakajima Co. Bank Reconciliation July 31 Cash balance according to bank statement Add deposit in transit, not recorded by bank Deduct outstanding checks Adjusted balance $ $ Cash balance according to company's records Add error in recording check $840 instead of $480 V Deduct bank service charge Adjusted balance $ Feedback 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)
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