The accounting records for Delta Driving School shows a cash balance of $14,134 on February 28,Year 1.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 cheques that the company had written during January were listed on the bank statement except for cheque #1908 in the amount of $1,528.
A)Prepare a bank reconciliation to calculate the company's adjusted cash balance at February 28,Year 1.
B)Prepare the journal entries needed to adjust the cash records as a result of the bank reconciliation procedures.

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The Answer of The accounting records for Delta Driving School shows a cash balance of $14,134 on February 28,Year 1.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 cheques that the company had written during January were listed on the bank statement except for cheque #1908 in the amount of $1,528.

The Accounting Records for Delta Driving School Shows a Cash