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Business, 09.07.2020 01:01 brattyshae

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
Deposits: 2/4 $ 2,350 Checks: 321 2/2 $ 4,350
2/11 1,950 322 2/8 650
2/18 2,850 323 2/12 2,150
2/25 3,750 324 2/19 1,850
Cash receipts: 2/26-2/28 1,250 325 2/27 450
$ 12,150 326 2/28 950
327 2/28 1,550
Balance on February 1 $ 6,450 $ 11,950
Receipts 12,150
Disbursements (11,950)
Balance on February 28 $ 6,650
Information from February's bank statement and company records reveals the following additional information:
The ending cash balance recorded in the bank statement is $10,665.
Cash receipts of $1,250 from 2/26–2/28 are outstanding.
Checks 325 and 327 are outstanding.
The deposit on 2/11 includes a customer's check for $450 that did not clear the bank (NSF check).
Check 323 was written for $2,800 for advertising in February. The bank properly recorded the check for this amount.
An automatic withdrawal for Oscar's February rent was made on February 4 for $1,200.
Oscar's checking account earns interest based on the average daily balance. The amount of interest earned for February is $165.
In January, one of Oscar's suppliers, Titanic Fabrics, borrowed $5,300 from Oscar. On February 24, Titanic paid $5,500 ($5,300 borrowed amount plus $200 interest) directly to Academy Bank in payment for January's borrowing.
Academy Bank charged service fees of $100 to Oscar’s for the month.
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.)
2. Record the necessary cash adjustments. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Total entries to the same account together when entering in the journal entry worksheet.)

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Oscar’s Red Carpet Store maintains a checking account with Academy Bank. Oscar’s sells carpet each d...
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