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

answer; empowerment and collaboration;

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans. 

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711.