Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
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 Deposits: Date 2/4 2/11 2/13 2/25 2/26-2/28 Amount $ 2,700 Checkst 2,300 3,200 4,100 1,600 $ 13,900 No. 321 322 322 324 325 326 327 Cash receipts: Date 2/2 2/8 2/12 2/19 2/27 2/28 2/28 Amount $ 4,700 400 2,500 2,200 200 700 1,900 $12,600 Balance on February 1 Receipts Disbursements Balance on February 28 $ 6,800 13,900 (12,600) $ 8,100 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 f. An automatic withdrawal for Oscar's February tent was made on February 4 for $1100, 9. Oscar's checking account earns interest based on the average daily balance. The amount of interest earned for February is $20 h. In January, one of Oscar's suppliers, Titanic Fabrics, borrowed $6,000 from Oscar On February 24, Titanic paid $6.250 ($6,000 borrowed amount plus $250 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 information 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 some account together when entering in the journal entry worksheet) 1 2 of 2 View transaction list ipped Journal entry worksheet 1 2 Book Record the amounts that increase cash ences Note: Enter debits before credits Transaction General Journal Dobit Record entry Clear entry Vew general Journal o search o to View transaction list Journal entry worksheet

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Controlling Fur Kleine Und Mittlere Unternehmen

Authors: David Muller

2nd Edition

3110514877, 9783110514872

More Books

Students also viewed these Accounting questions

Question

Critically evaluate Freuds stages of psychosexual development.

Answered: 1 week ago

Question

Describe four issues that affect career management

Answered: 1 week ago