The accounting records for Delta Driving School shows a cash balance of $14,134 on February 28, 2012. On the evening of February 28, company receipts of $1,250 were placed in the bank's night deposit drop box; this deposit was processed by the bank on March 1. The February 28 bank statement shows balance of $18,877, including collection of a $6,000 note receivable plus $55 of interest earned, a service charge of $40, and a $1,550 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 #1908 in the amount of $1,528.

A.) Prepare a bank reconcilliation to calculate the company's adjusted cash balance at February 28, 2012.

B.) Prepare the journal entries needed to adjust the cash records as a result of the bank reconcilliation procedures.