Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Reynolds's Red Carpet Store maintains a checking account with Academy Bank. Reynolds's sells carpet each day but makes bank deposits only onke per week. The

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Reynolds's Red Carpet Store maintains a checking account with Academy Bank. Reynolds's sells carpet each day but makes bank deposits only onke 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 $9,295 b. Cash receipts of $1,050 from 2/262/28 are outstanding c. Checks 325 and 327 are outstanding. d. The deposit on 211 includes a customer's check for $350 that did not clear the bank (NSF check). e. Check 323 wos 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 $4,810 for legal fees expense and $500 for entertainment expense h. In January, one of Reynolds's suppliers, Titanic Fabrics, borrowed $4,900 from Reynolds On February 24, Titanic paid \$5,050 (\$4,900 borrowed amount plus $150 interest) directly to Acaderny Bank in payment for Januarys borrowing 1 Academy Bank charged service fees of $145 to Reynolds's for the month. Required: 1. Prepare a bank reconcilation for Reynolds's checking account on February 28, 2024 2. Record the necessary cash adjustments. Journal entry worksheet Record the amounts that decrease cash. Note: Enter debits before credits. Journal entry worksheet

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting A User Perspective

Authors: Robert E. Hoskin, Maureen R. Fizzell, Donald C. Cherry

4th Canadian Edition

0470834455, 978-0470834459

More Books

Students also viewed these Accounting questions

Question

List and describe the seven information-gathering techniques.

Answered: 1 week ago