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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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.

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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.

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