Required information [The following information applies to the questions displayed below.] Oscars Red Carpet Store maintains a checking account with Academy Bank. Oscars sells carpet each day but makes bank deposits only once per week. The following provides information from the companys cash ledger for the month ending February 28, 2021. Date Amount No. Date Amount Deposits: 2/4 $ 2,400 Checks: 321 2/2 $ 4,400 2/11 2,000 322 2/8 450 2/18 2,900 323 2/12 2,200 2/25 3,800 324 2/19 1,900 Cash receipts: 2/26-2/28 1,300 325 2/27 250 $ 12,400 326 2/28 750 327 2/28 1,600 Balance on February 1 $ 6,500 $ 11,550 Receipts 12,400 Disbursements (11,550 ) Balance on February 28 $ 7,350 Information from February's bank statement and company records reveals the following additional information: The ending cash balance recorded in the bank statement is $11,645. Cash receipts of $1,300 from 2/262/28 are outstanding. Checks 325 and 327 are outstanding. The deposit on 2/11 includes a customer's check for $250 that did not

clear the bank (NSF check). 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 $1,100. Oscar's checking account earns interest based on the average daily balance. The amount of interest earned for February is $170. 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 Oscars for the month. Required: 1. Prepare a bank reconciliation for Oscar's checking account on February 28, 2021.