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The accounting records for Erismann Business shows a cashbalance of $14 134 on 28 February 2014. On the evening of 28February, company receipts of $1 250 were placed in thebank’s night deposit drop box; this deposit was processed bythe bank on 1 March. The 28 February bank statement showsbalance of $18 877, including collection of a $6 000 notereceivable plus $55 of interest earned, a service charge of $40and a $1 550 debit memo for the payment of the company’sutility bill. All of the cheques that the company had writtenduring January were listed on the bank statement except forcheque #1908 in the amount of $1 528.
Prepare a bank reconciliation to calculate the adjusted cashbalance for Erismann’s cheque account at 28 February, 2009.Prepare the journal entries that Erismann must record toadjust its cash records as a result of the bank reconciliationprocedures
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