Nickleson Company had an unadjusted cash balance of $5,782 as of May 31. The company's bank statement, also dated May 31, included a $70 NSF check written by one of Nickleson's customers. There were $706 in outstanding checks and $295 in deposits in transit as of May 31. According to the bank statement, service charges were $65, and the bank collected a $1150 note receivable for Nickleson. The bank statement also showed $22 of interest revenue earned by Nickleson. Required Determine the true cash balance as of May 31. (Hint: It is not necessary to use all of the preceding items to determine the true balance.)
Nickleson Company had an unadjusted cash balance of $5,782 as of May 31. The company's bank statement, also dated May 31, included a $70 NSF check written by one of Nickleson's customers. There were $706 in outstanding checks and $295 in deposits in transit as of May 31. According to the bank statement, service charges were $65, and the bank collected a $1150 note receivable for Nickleson. The bank statement also showed $22 of interest revenue earned by Nickleson. Required Determine the true cash balance as of May 31. (Hint: It is not necessary to use all of the preceding items to determine the true balance.)
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter6: Bank Accounts, Cash Funds, And Internal Controls
Section: Chapter Questions
Problem 5E
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