The accounting records for Dusek Dentistry, Inc. show the following information for February 28, 2019:

Additional information pertaining to this checking account was obtained by comparing the monthly bank statement with the company's records. The following was revealed:
1.The ending cash balance per the bank statement was $7,960.
2.Deposits of 2,100 from February 26-28 are in transit.
3.Checks 347 and 349 are outstanding.
4.An $100 NSF check from a customer did not clear the bank. This NSF check was included in the February 25th deposit.
5.Check #343 was prepared correctly as a $1,400 payment on account. This check was properly recorded by the bank, but was erroneously included on the company's records in the amount of $4,100.
6.A debit memo for $2,000 was shown on the bank statement as notice that the company's rent was automatically paid from the checking account on February 1st.
7.A credit memo for $15 was shown on the bank statement as notice that the company had earned interest on its average daily balance in this checking account.
8.The bank's fees for the month totaled $65.
A) Prepare a bank reconciliation to calculate the company's adjusted cash balance at February 28, 2019.
B) Prepare the journal entries that must be recorded to adjust the cash records as a result of these bank reconciliation procedures.

Which One of the Following Statements Is True

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