Nolan Company's cash account shows a $21,268 debit balance and its bank statement shows $19,711 on deposit at the close of business on June 30. Outstanding checks as of June 30 total $2,231. The June 30 bank statement lists $27 in bank service charges; the company has not yet recorded the cost of these services. In reviewing the bank statement, a $50 check written by the company was mistakenly recorded in the company’s books as $59. June 30 cash receipts of $3,801 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 $31 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.

Balance at Bank as per the Cash Book   $21,250

Add Unpresented Checks :

Outstanding checks                                     $2,231

Less Lodgements not yet credited :

Cash Receipts - Night Depository             ($3,801)

Balance as per Bank Satement               $20,400

Explanation:

First bring the Cash book up to date :

Cash Book Bank Balanace

Debits  :

Bank Balance as of June 30    $21,268

Error - Overstated Check                  $9

Totals                                            21,277

Interest earned $31

Credits :

Bank service charges                     $27

Balance (Up to Date)                 $21,250

Totals                                          $21,277

Then, Prepare the Bank Reconciliation Statement :

Balance at Bank as per the Cash Book   $21,250

Add Unpresented Checks :

Outstanding checks                                     $2,231

Less Lodgements not yet credited :

Cash Receipts - Night Depository             ($3,801)

Balance as per Bank Satement               $20,400

for storing the moneys