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. Deposits Date 2/4 2/11 2/18 2/25 2/26-2/28 Amount $ 2,650 Checks: 2,250 3,150 4,050 1.550 $ 13,650 No. 321 322 323 324 325 326 327 Date 2/2 2/8 2/12 2/19 2/27 2/28 2/28 Cash receipts: Amount $ 4,650 450 2,450 2,150 250 750 1,850 $12,550 Balance on February 1 Receipts Disbursements Balance on February 28 $ 6,750 13,650 (12,550) $ 7,850 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 $12,795 b. Cash receipts of $1,550 from 2/26-2/28 are outstanding c. Checks 325 and 327 ore outstanding, d. The deposit on 2/11 includes a customer's check for $250 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. 1 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 $195, h. In January, one of Oscar's suppliers, Titanic Fabrics, borrowed $5,900 from Oscar. On February 24, Titanic paid $6,100 ($5.900 borrowed amount plus $200 interest) directly to Academy Bank in payment for January's borrowing 1. Academy Bank charged service fees of $100 to Oscar's for the month. . UHUSU ALIUD OLULICI LIELIVEJUU UIDELIU HULLE WIC WU YI LELAX e. Check 323 was written for $2,800 for advertising in February. The bank properly recorded the check for this amount 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 $195 h. In January, one of Oscar's suppliers, Titanic Fabrics, borrowed $5,900 from Oscar On February 24, Titanic paid $6,100 ($5,900 borrowed amount plus $200 interest) directly to Academy Bank in payment for January's borrowing, Academy Bank charged service fees of $100 to Oscar's for the month. Problem 4 2A Part 1 Required: 1. Prepare a bank reconciliation for Oscar's checking account on February 28, 2021. (Amounts to be deducted should be indicated with a minus sign. Total entries to the same account together when entering in the bank reconciliation) OSCAR'S RED CARPET STORE Bank Reconciliation February 28, 2021 Bank's Cash Balance Company's Cash Balance Por bank statement $ 12.795 per general ledger Deposits outstanding 1.550 Company error Check outstanding 2.100 EFT for rent Interest on account Interest on note Note collected NSF check Service fous Bank balance per reconciliation Company balance per reconciliation WIE JESHIMIWUUUUUUGE CUI, VIURI Pupeny CUIU URECHENIUI UND UNTUUR 1. 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 $195 h. In January, one of Oscar's suppliers, Titanic Fabrics, borrowed $5,900 from Oscar. On February 24, Titanic paid $6,100 ($5,900 borrowed amount plus $200 interest) directly to Academy Bank in payment for January's borrowing. 1. 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.) General Journal Dobit Credit View transaction list View journal entry worksheet No Transaction 1 Cash Notes Receivable Interest Revenue