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help Wilburs Red Carpet Store maintains a checking account with Academy Bank. Wilburs sells carpet each day but makes bank deposits only once per week.
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Wilburs Red Carpet Store maintains a checking account with Academy Bank. Wilburs 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. Deposits: Checks: Date 2/4 2/11 2/18 2/25 2/26 - 2/28 Amount $1,800 1,400 2,300 3,200 700 Number 323 324 325 326 Date 2/12 2/19 2/27 2/28 Amount $1,600 1,300 450 950 Cash receipts 327 2/28 1,000 $9,400 $5,300 Balance on February 1 Receipts Disbursements Balance on February 28 Amount $5,900 9,400 (5,300) $10,000 Information from February's bank statement and company records reveals the following additional information: 1. The ending cash balance recorded in the bank statement is $7,110. ). Cash receipts of $700 from 2/262/28 are outstanding. r. Checks 325 and 327 are outstanding. 1. The deposit on 2/11 includes a customer's check for $450 that did not clear the bank (NSF check). 2. Check 323 was written for $2,500 for advertising in February. The bank properly recorded the check for this amount. f. An EFT withdrawal for Wilbur's February rent was made on February 4 for $1,200. 1. Debit card transactions include $4,880 for legal fees expense and $500 for entertainment expense. 1. In January, one of Wilbur's suppliers, Titanic Fabrics, borrowed $4,200 from Wilbur. On February 24, Titanic paid $4,400 ($4,200 borrowed amount plus $200 interest) directly to Academy Bank in payment for January's borrowing. i. Academy Bank charged service fees of $110 to Wilbur's for the month. Required: 1. Prepare a bank reconciliation for Wilbur'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 Wilbur's checking account on February 28, 2024. (Amounts to be deducted should be indicated with sign.) $ Bank's Cash Balance Per bank statement Deposits outstanding Checks outstanding WILBUR'S RED CARPET STORE Bank Reconciliation February 28, 2024 Company's Cash Balance $ 7,110 Per general ledger 700 NSF check (1.450) Company error EFT for rent Note collected Interest on note Service fees Debit card for legal fees Debit card for entertainment 1,000 (450) (900) (1,200) 4,400 (80) (110) (4,800) (500) Bank balance per reconciliation $ 6,360 Company balance per reconciliation $ 6,360 Complete this question by entering your answers in the tabs below. 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 a View transaction list View journal entry worksheet No General Journal Debit Credit Transaction 1 4,400 Cash Notes Receivable Interest Revenue N N 2 7,960 Cash Entertainment Expense Legal Fees Expense Rent Expense Advertising Expense Accounts Receivable Service Fee Expense 500 4,800 1,200 900 450 110Step by Step Solution
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