Reynolds's Red Carpet Store maintains a checking account with Academy Bank. Reynolds'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.

Reynolds's Red Carpet Store maintains a checking account with Academy Bank. Reynolds'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. 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 $7,465. b. Cash receipts of $750 from 2/262/28 are outstanding. c. Checks 325 and 327 are outstanding. d. The deposit on 2/11 includes a customer's check for $400 that did not clear the bank (NSF check). e. Check 323 was written for $2,500 for advertising in February. The bank properly recorded the check for this amount. f. An EFT withdrawal for Reynolds's February rent was made on February 4 for $1,300. g. Debit card transactions include $4,870 for legal fees expense and $400 for entertainment expense. h. In January, one of Reynolds's suppliers, Titanic Fabrics, borrowed $4,300 from Reynolds. On February 24, Titanic paid $4,450 ( $4,300 borrowed amount plus $150 interest) directly to Academy Bank in payment for January's borrowing. i. Academy Bank charged service fees of $115 to Reynolds's for the month. Required: 1. Prepare a bank reconciliation for Reynolds's checking account on February 28, 2024. 2. Record the necessary cash adjustments. Prepare a bank reconciliation for Reynolds's checking account on February 28, 2024. (Amounts to be deducted should be indicated with a minus sian.) Record the necessary cash adjustments. (If no entry is required for a transaction/event, select "No Journal Entry account field.) Journal entry worksheet Note: Enter debits before credits