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part 2 for this question Required information Problem 4-2A Prepare the bank reconciliation and record cash adjustments (L04-5) (The following information applies to the questions
part 2 for this question
Required information Problem 4-2A Prepare the bank reconciliation and record cash adjustments (L04-5) (The following information applies to the questions displayed below.) 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. Date Amount No. Date Amount Deposits: 2/4 $ 2,350 Checks: 321 2/2 $ 4,350 2/11 1,950 322 2/8 650 2/18 2,850 323 2/12 2,150 2/25 3,750 324 2/19 1,850 Cash 2/26- 1,250 receipts: 325 2/27 450 2/28 $ 12,150 326 2/28 950 327 2/28 1,550 Balance on February 1 $ 6,450 $11,950 Receipts 12,150 Disbursements (11,950) Balance on February 28 $ 6,650 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 $10,665. b. Cash receipts of $1,250 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 $450 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 rent was made on February 4 for $1,200. 9. Oscar's checking account earns interest based on the average daily balance. The amount of interest earned for February is $165. h. In January, one of Oscar's suppliers, Titanic Fabrics, borrowed $5,300 from Oscar. On February 24, Titanic paid $5,500 ($5,300 borrowed amount plus $200 interest) directly to Academy Bank in payment for January's borrowing, i. Academy Bank charged service fees of $100 to Oscar's for the month. Problem 4-2A Part 2 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 same account together when entering in the journal entry worksheet.) View transaction list Journal entry worksheet Record the amounts that increase cash. Note: Enter debits before credits. General Journal Debit Credit Transaction 1 Record entry View general journal Clear entry View transaction list Journal entry worksheet
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