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Problem
Nickleson Company had an unadjusted cash balance of $9,838 as of May 31. The company's bank statement, also dated May 31, included a $99 NSF check written by one of Nickleson's customers. There were $1,052 in outstanding checks and $220 in deposits in transit as of May 31. According to the bank statement, service charges were $40, and the bank collected a $650 note receivable for Nickleson. The bank statement also showed $16 of interest revenue earned by Nickleson.
Required
Determine the true cash balance as of May 31.
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