A Company's Records Indicate the Balance in Its Chequing Account

Essay

A company's records indicate the balance in its chequing account at the end of the month is $3,918.Comparing the company's records with the monthly bank statement reveals several additional cash transactions,such as deposits in transit of $4,022,three outstanding cheques totalling $497,a $30 bank service charge,a $1,000 note receivable collected by the bank plus interest earned of $35,and an NSF cheque for $150.Determine the company's adjusted cash balance and prepare the journal entries necessary to adjust the account balance.