Banowetz Flooring has a checking account with American Trust Bank. For the month ending February 28, 2021, Banowetz's cash ledger is as follows: Deposits: Date 2/4 2/11 2/18 2/25 2/26-2/28 Amount $ 1,850 Checks: 1,450 2,350 3,250 750 $ 9,650 No. 321 322 323 324 325 Date 2/2 2/8 2/12 2/19 2/27 Amount $3,850 600 1,650 1,350 400 Cash receipts: 326 2/28 327 2/28 900 1,050 $9,800 Balance on February 1 Receipts Disbursements Balance on February 28 $ 5,950 9,650 (9,800) $ 5,800 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 $8,395. b. Cash receipts of $750 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 $400 that did not clear the bank (NSF check). e. Check 323 was written for $2,500 for advertising in February. The bank properly recorded the check for this amount. f. An automatic withdrawal for Banowetz's February rent was made on February 4 for $1,300. g. Banowetz's checking account earns interest based on the average daily balance. The amount of interest earned for February is $115. h. In January, one of Banowetz suppliers, Floor Show, borrowed $4,300 from Banowetz. On February 24, Floor Show paid $4,450 ($4,300 borrowed amount plus $150 interest) directly to American Trust Bank in payment for January's borrowing. i. American Trust Bank charged service fees of $120 to Banowetz for the month. Required: 1. Prepare a bank reconciliation for Banowetz'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.) BANOWETZ FLOORING Bank Reconciliation February 28, 2021 Company's Cash Balance Per general ledger Bank's Cash Balance Per bank statement Checks outstanding Company error Deposits outstanding EFT for rent Interest on account Bank balance per reconciliation Company balance per reconciliation 1. Prepare a bank reconciliation for Banowetz'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.) BANOWETZ FLOORING Bank Reconciliation February 28, 2021 Company's Cash Balance Per general ledger Bank's Cash Balance Per bank statement Interest on account Interest on note Note collected NSF check Service fees Bank balance per reconciliation Company balance per reconciliation
