Required information [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 $ 2,400 Checks: 2,000 2,900 3,800 1,300 $ 12,400 No. Date 321 2/2 322 2/8 323 2/12 324 2/19 325 2/27 326 2/28 327 2/28 Cash receipts: Amount $ 4,400 450 2,208 1,900 250 750 1,600 $11,550 Balance on February 1 Receipts Disbursements Balance on February 28 $ 6,500 12,400 (11,550) $ 7,350 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 $11,645. b. Cash receipts of $1,300 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 $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. f. An automatic withdrawal for Oscar's February rent was made on February 4 for $1,100. g. Oscar's checking account earns interest based on the average daily balance. The amount of interest earned for February is $170. h. In January, one of Oscar's suppliers, Titanic Fabrics, borrowed $5,400 from Oscar. On February 24, Titanic paid $5,650 ($5,400 borrowed amount plus $250 interest) directly to Academy Bank in payment for January's borrowing. 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, 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 Per bank statement Per general ledger Deposits outstanding NSF check Checks outstanding Company error EFT for rent Interest on account Note collected Interest on noto Service fees Bank balance per reconciliation Company balance per reconciliation 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 1 2 Record the amounts that increase cash. Note: Enter debits before credits. General Journal Debit Credit Transaction 1 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 1 2 Record the amounts that decrease cash. Note: Enter debits before credits Transaction General Journal Debit Credit 2
