Oscars Red Carpet Store maintains a checking account with Academy Bank. Oscars sells carpet each day but makes bank deposits only once per week. The following provides information from the companys cash ledger for the month ending February 28, 2021.

	Date	Amount				No.	Date	Amount
Deposits:	2/4	$	2,150		Checks:	321	2/2	$	4,150
	2/11		1,750			322	2/8		550
	2/18		2,650			323	2/12		1,950
	2/25		3,550			324	2/19		1,650
Cash receipts:	2/26-2/28		1,050			325	2/27		350
		$	11,150			326	2/28		850
						327	2/28		1,350
Balance on February 1		$	6,250					$	10,850
Receipts			11,150
Disbursements			(10,850	)
Balance on February 28		$	6,550

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 $10,075.
2. Cash receipts of $1,050 from 2/262/28 are outstanding.
3. Checks 325 and 327 are outstanding.
4. The deposit on 2/11 includes a customer's check for $350 that did not clear the bank (NSF check).
5. Check 323 was written for $2,500 for advertising in February. The bank properly recorded the check for this amount.
6. An automatic withdrawal for Oscar's February rent was made on February 4 for $1,300.
7. Oscar's checking account earns interest based on the average daily balance. The amount of interest earned for February is $145.
8. In January, one of Oscar's suppliers, Titanic Fabrics, borrowed $4,900 from Oscar. On February 24, Titanic paid $5,050 ($4,900 borrowed amount plus $150 interest) directly to Academy Bank in payment for January's borrowing.
9. Academy Bank charged service fees of $120 to Oscars for the month.

Problem 4-2A Part 1

Required: 1. Prepare a bank reconciliation for Oscar's checking account on February 28, 2021.