Problem 4-2A (Static) Prepare the bank reconciliation and record cash adjustments (L04-5) 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, 2024. Deposits: Checks: Date 2/4 2/11 2/18 2/25 2/26-2/28 Amount $2,700 2,300 3,200 4,100 1,600 $13,900 Number 323 324 325 326 327 Date 2/12 2/19 2/27 2/28 2/28 Amount $2,500 2,200 200 700 1,900 $7,500 Cash receipts: Balance on February 1 1 Receipts Disbursements Balance on February 28 1990 Amount $6,800 13,900 (7,500) $13,200 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 EFT withdrawal for Oscar's February rent was made on February 4 for $1,100. g. Debit card transactions include $4,700 for legal fees expense and $400 for entertainment expense. h. In January, one of Oscar's suppliers, Titanic Fabrics, borrowed $6,000 from Oscar. On February 24, Titanic paid $6,270 ($6,000 borrowed amount plus $270 interest) directly to Academy Bank in payment for January's borrowing. i. Academy Bank charged service fees of $125 to Oscar's for the month Required: 1. Prepare a bank reconciliation for Oscar'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 Required 1 Required 2 Prepare a bank reconciliation for Oscar's checking account on February 28, 2024. (Amounts to be deducted should be indicated with a minus sign.) OSCAR'S RED CARPET STORE Bank Reconciliation February 28, 2024 Company's Cash Balance Per general ledger Bank's Cash Balance Per bank statement Bank balance per reconciliation Company balance per reconciliation 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 account field.) View transaction list Journal entry worksheet Record the amounts that increase cash. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal Record the amounts that decrease cash. Note: Enter debits before credits. Transaction General Journal Debit Credit 2 Record entry Clear entry View general journal
