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 31,2012.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 31,2012.