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Chapter 4 Internal Controls & Cash Saved 7 Oscar's Red Carpet Store maintains a checking account with Academy Bank. Oscar's sells carpet each day
Chapter 4 Internal Controls & Cash Saved 7 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, 2024. 20 points Datel Amount Number Date Anourit Deposits: 2/4 $2,700 Checks: 323 2/12 $2,500 2/11 2,300 324 2/19 2,200 2/18 3,200 325 2/27 200 2/25 4,100 326 2/28 700 Book 2/26 cash receipts: 1,600 327 2/28 1,000 2/28 $13,000 $7,500 Print Amount Balance on February 1 $6,800 Receipts 13,900 Disbursements (7,500) Balance on February 28 $13, 200 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 $13,145. b. Cash receipts of $1,600 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 $200 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. An EFT withdrawal for Oscar's February rent was made on February 4 for $1,100. g. Debit card transactions include $4,700 for legal fees expense and $400 for entertainment expense. h. In January, one of Oscar's suppliers, Titanic Fabrics, borrowed $6,000 from Oscar. On February 24, Titanic paid $6,270 ($6,000 borrowed amount plus $270 interest) directly to Academy Bank in payment for January's borrowing 1. Academy Bank charged service fees of $125 to Oscar's for the month. Required: 1. Prepare a bank reconciliation for Oscar's checking account on February 28, 2024. 2. Record the necessary cash adjustments. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a bank reconciliation for Oscar's checking account on February 28, 2024. (Amounts to be deducted should be indicated with a minus sign.) OSCAR'S RED CARPET STORE Chapter 4 Internal Controls & Cash Saved 20 7 points eBook b Prim References Information from February's bank statement and company records reveals the following additional Information: e. The ending cash balance recorded in the bank statement is $13,145. b. Cash receipts of $1,600 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 $200 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. t. An EFT withdrawal for Oscar's February rent was made on February 4 for $1,100. g. Debit card transactions include $4,700 for legal fees expense and $400 for entertainment expense. h. In January, one of Oscar's suppliers, Titanic Fabrics, borrowed $6,000 from Oscar. On February 24, Titanic paid $6,270 ($6,000 borrowed amount plus $270 Interest) directly to Academy Bank In payment for January's borrowing. 1. Academy Bank charged service fees of $125 to Oscar's for the month. Required: 1. Prepare a bank reconciliation for Oscar's checking account on February 28, 2024. 2. Record the necessary cash adjustments. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a bank reconciliation for Oscar's checking account on February 28, 2024. (Amounts to be deducted should be indicated with a minus sign.). Bank's Cash Balance Per bank statement OSCAR'S RED CARPET STORE Bank Reconciliation February 28, 2024 Company's Cash Balance Per general ledger Bank balance per reconciliation Company balance per reconciliation Required 2 > Chapter 4 Internal Controls & Cash 7 20 points Book Print References Required: 1. Prepare a bank reconciliation for Oscar's checking account on February 28, 2024. 2. Record the necessary cash adjustments. Complete this question by entering your answers in the tabs below. Saved Required 1 Required 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.) View transaction list Journal entry worksheet < 1 2 Record the amounts that increase cash. Note: Enter debits before credits Transaction 1 General Journal Debit Credit Record entry Clear entry
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