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Gemiola [76]
3 years ago
6

Nickleson Company had an unadjusted cash balance of $6,558 as of May 31. The company’s bank statement, also dated May 31, includ

ed a $86 NSF check written by one of Nickleson’s customers. There were $1,223 in outstanding checks and $240 in deposits in transit as of May 31. According to the bank statement, service charges were $85, and the bank collected an $1,050 note receivable for Nickleson. The bank statement also showed $18 of interest revenue earned by Nickleson.
Required
Determine the true cash balance as of May 31.
Business
1 answer:
Anna71 [15]3 years ago
6 0

Answer:

True cash balance $7,455

Explanation:

Calculation to Determine the true cash balance as of May

Unadjusted cash balance of $6,558

Add bank collection note $1,050

Add interest revenue $18

Less NSF check $86

Less service charges $85

True cash balance $7,455

Therefore True cash balance is $7,455

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