Oscar's Red Carpet Store maintains a checking account with Academy Bank. Oscar's sells carpet each day but makes bank deposits only once per week. The following provides information from the company's...


Oscar's Red Carpet Store maintains a checking account with Academy Bank. Oscar's sells carpet each day but makes<br>bank deposits only once per week. The following provides information from the company's cash ledger for the month<br>ending February 28, 2021.<br>Date<br>Amount<br>No.<br>Date<br>Amount<br>$ 2,200 Checks:<br>1,800<br>2,700<br>3,600<br>1,100<br>$ 11,400<br>$ 4,200<br>500<br>321<br>322<br>323<br>324<br>325<br>Deposits:<br>2/4<br>2/11<br>2/18<br>2/25<br>2/26-2/28<br>2/2<br>2/8<br>2/12<br>2/19<br>2/27<br>2,000<br>1,700<br>300<br>Cash receipts:<br>326<br>2/28<br>800<br>1,400<br>$10,900<br>327<br>2/28<br>Balance on February 1<br>$ 6,300<br>Receipts<br>Disbursements<br>11,400<br>(10,900)<br>$ 6,800<br>Balance on February 28<br>Information from February's bank statement and company records reveals the following additional information:<br>a. The ending cash balance recorded in the bank statement is $10,350.<br>b. Cash receipts of $1,100 from 2/26-2/28 are outstanding.<br>c. Checks 325 and 327 are outstanding.<br>d. The deposit on 2/11 includes a customer's check for $300 that did not clear the bank (NSF check).<br>e. Check 323 was written for $2,800 for advertising in February. The bank properly recorded the check for this amount.<br>f. An automatic withdrawal for Oscar's February rent was made on February 4 for $1,200.<br>g. Oscar's checking account earns interest based on the average daily balance. The amount of interest earned for<br>February is $150.<br>h. In January, one of Oscar's suppliers, Titanic Fabrics, borrowed $5,000 from Oscar. On February 24, Titanic paid $5,200<br>($5,000 borrowed amount plus $200 interest) directly to Academy Bank in payment for January's borrowing.<br>i. Academy Bank charged service fees of $100 to Oscar's for the month.<br>

Extracted text: Oscar's Red Carpet Store maintains a checking account with Academy Bank. Oscar's sells carpet each day but makes bank deposits only once per week. The following provides information from the company's cash ledger for the month ending February 28, 2021. Date Amount No. Date Amount $ 2,200 Checks: 1,800 2,700 3,600 1,100 $ 11,400 $ 4,200 500 321 322 323 324 325 Deposits: 2/4 2/11 2/18 2/25 2/26-2/28 2/2 2/8 2/12 2/19 2/27 2,000 1,700 300 Cash receipts: 326 2/28 800 1,400 $10,900 327 2/28 Balance on February 1 $ 6,300 Receipts Disbursements 11,400 (10,900) $ 6,800 Balance on February 28 Information from February's bank statement and company records reveals the following additional information: a. The ending cash balance recorded in the bank statement is $10,350. b. Cash receipts of $1,100 from 2/26-2/28 are outstanding. c. Checks 325 and 327 are outstanding. d. The deposit on 2/11 includes a customer's check for $300 that did not clear the bank (NSF check). e. Check 323 was written for $2,800 for advertising in February. The bank properly recorded the check for this amount. f. An automatic withdrawal for Oscar's February rent was made on February 4 for $1,200. g. Oscar's checking account earns interest based on the average daily balance. The amount of interest earned for February is $150. h. In January, one of Oscar's suppliers, Titanic Fabrics, borrowed $5,000 from Oscar. On February 24, Titanic paid $5,200 ($5,000 borrowed amount plus $200 interest) directly to Academy Bank in payment for January's borrowing. i. Academy Bank charged service fees of $100 to Oscar's for the month.
Required:<br>1. Prepare a bank reconciliation for Oscar's checking account on February 28, 2021. (Amounts to be deducted should be indicated<br>with a minus sign. Total entries to the same account together when entering in the bank reconciliation.)<br>OSCAR'S RED CARPET STORE<br>Bank Reconciliation<br>February 28, 2021<br>Bank's Cash Balance<br>Company's Cash Balance<br>Per bank statement<br>Per general ledger<br>Bank balance<br>per<br>reconciliation<br>Company balance per reconciliation<br>

Extracted text: Required: 1. Prepare a bank reconciliation for Oscar's checking account on February 28, 2021. (Amounts to be deducted should be indicated with a minus sign. Total entries to the same account together when entering in the bank reconciliation.) OSCAR'S RED CARPET STORE Bank Reconciliation February 28, 2021 Bank's Cash Balance Company's Cash Balance Per bank statement Per general ledger Bank balance per reconciliation Company balance per reconciliation
Jun 11, 2022
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