The Accounting Records for Dutch Island Company Shows a Cash

Essay

The accounting records for Dutch Island Company shows a cash balance of $4,133 on January 31, 2013. On the evening of January 31, company receipts of $1,250 were placed in the bank's night deposit drop box; this deposit was processed by the bank on February 1. The January 31 bank statement shows balance of $8,876, including collection of a $5,000 note receivable plus $55 of interest earned, a service charge of $40, and a $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 #731 in the amount of $1,528.
Prepare a bank reconciliation to calculate the company's adjusted cash balance at January 31, 2013.