Valentine Investigations has the following information for its cash account:

Balance, 1/31	$ 7,581
Deposits during February	106,850
Checks written during February	102,440

Valentines bank statement for February contained the following information:

A comparison of company records with the bank statement provided the following data:

	At 1/31	At 2/28
Deposits in transit	$2,730	$4,680
Outstanding checks	4,224	5,864

	Required:
1.	Prepare a bank reconciliation as of February 28.
2.	Prepare adjusting entries for Valentine based on the information developed in the bank reconciliation.
3.	What is the amount of cash that should be reported on the February 28 balance sheet?

Amount Descriptions
Add: Deposits in transit
Add: Outstanding checks
Add: Debit memo (electric bill)
Add: Service charge
Less: Deposits in transit
Less: Outstanding checks
Less: Debit memo (electric bill)
Less: Service charge

February 28,20XX Balance per bank, 1/31 Add: 3 February deposits 4 Less: 6 Checks paid in February 7 Bank service charge 8 Debit memo (electric bill) 9 Balance per bank, 2/28 Bank Reconciliation Valentne Investigations Bank Reconciliation Schedule February 28,20XX 1 Cash balance from bank statement 2 3 4 Adjusted cash balance 5 Cash balance from company records 6 7 8 Adjusted cash balance GENERAL JOURNAL BALANCE SHEET INCOME STATEMENT IMPACT ON FINANCIAL STATEMENTS February 28,20XX Balance per bank, 1/31 Add: 3 February deposits 4 Less: 6 Checks paid in February 7 Bank service charge 8 Debit memo (electric bill) 9 Balance per bank, 2/28 Bank Reconciliation Valentne Investigations Bank Reconciliation Schedule February 28,20XX 1 Cash balance from bank statement 2 3 4 Adjusted cash balance 5 Cash balance from company records 6 7 8 Adjusted cash balance GENERAL JOURNAL BALANCE SHEET INCOME STATEMENT IMPACT ON FINANCIAL STATEMENTS