The bookkeeper at Jefferson Company has not reconciled the bank statement with the Cash account, saying, I dont have time. You have been asked to prepare a reconciliation and review the procedures with the bookkeeper. The February 28, current year, bank statement and the February t-account for Cash showed the following (summarized):

BANK STATEMENT ChecksDepositsBalance Balance, Feb 1, current year $31,000 Deposits during Feb $47,100 78,100 Interest collected 2,440 80,540 Checks cleared during Feb $51,000 29,540 NSF checkA. B. Wright 310 29,230 Bank service charges 50 29,180 Balance, Feb 28, current year 29,180 Cash Beginning Balance 21,000 Checks written 49,500 Deposits 52,700

A comparison of checks written before and during February with the checks cleared through the bank showed outstanding checks at the end of February of $8,500 (including $3,700 written before and $4,800 written during February). No deposits in transit were carried over from January, but a deposit was in transit at the end of February. (hint: it would be the difference between the $52,700 that the firm recorded as increases to cash during February less the $47,100 amount that the bank indicated as the total deposits in February).

Required: 1. Prepare a detailed bank reconciliation for the month of February. See page 310, exhibit 6.5 for an example. There is an Excel workbook set up that you can use. 2. Give any required adjusting journal entries as a result of the reconciliation. 3. What total amount of cash should be reported on the balance sheet at the end of February?