What is the True Cash Balance? Nickleson Company had an unadjusted cash balance

Question

What is the True Cash Balance?

Nickleson Company had an unadjusted cash balance of $7,750 as of May 31. The company's bank statement, also dated May 31, included a $72 NSF check written by one of Nickleson's customers. There were $800 in outstanding checks and $950 in deposits in transit as of May 31. According to the bank statement, service charges were $50, and the bank collected a $800 note receivable for Nickleson. The bank statement also showed $13 of interest revenue earned by Nickleson. Required Determine the true cash balance as of May 31.

Explanation / Answer

Unadjusted Cash Balance as of may 31 $7,750 Add: Interest Earned $13 Note Collected by Bank $800 Less: NSF check ($72) Less Bank charges (50) True Cash Balance $8441

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.