The accounting records for Delta Driving School shows a cash balance of $14,134 on February 28, 2012. On the evening of February 28, company receipts of $1,250 were placed in the bank's night deposit drop box; this deposit was processed by the bank on March 1. The February 28 bank statement shows balance of $18,877, including collection of a $6,000 note receivable plus $55 of interest earned, a service charge of $40, and a $1,550 debit memo for the payment of the company's utility bill. All of the checks that the company had written during January were listed on the bank statement except for check #1908 in the amount of $1,528. Hide A) Prepare a bank reconciliation to calculate the company's adjusted cash balance at February 28, 2012. Delta Driving School Bank Reconciliation February 28, 2012 Cash balance from the bank statement Adjusted cash balance Cash balance from company records Adjusted cash balance Hide B) Prepare the journal entries needed to adjust the cash records as a result of the bank reconciliation procedures.

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter6: Bank Accounts, Cash Funds, And Internal Controls

Section: Chapter Questions

Problem 4PB

See similar textbooks

Related questions

Concept explainers

Question

The accounting records for Delta Driving School shows a cash balance of $14,134 on February 28, 2012. On the evening of February 28, company receipts of $1,250 were placed in the bank's night deposit drop box; this deposit was processed by the bank on March 1. The February 28 bank statement shows balance of $18,877, including collection of a $6,000 note receivable plus $55 of interest earned, a service charge of $40, and a $1,550 debit memo for the payment of the company's utility bill. All of the checks that the company had written during January were listed on the bank statement except for check #1908 in the amount of $1,528.

Hide

A) Prepare a bank reconciliation to calculate the company's adjusted cash balance at February 28, 2012.

Delta Driving School

Bank Reconciliation

February 28, 2012

Cash balance from the bank statement

Adjusted cash balance

Cash balance from company records

Adjusted cash balance

Hide

B) Prepare the journal entries needed to adjust the cash records as a result of the bank reconciliation procedures.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions