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 once 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 once per week. The following provides information from the company's cash ledger for the month ending February 28, 2024. Deponitor Checks: Date 2/4 2/11 2/18 2/25 2/26- 2/28 Amount $2,000 1,600 2,500 3,400 900 Number 323 324 325 326 327 Date 2/12 2/19 2/27 2/28 2/28 Amount $1,800 1,500 250 750 1,200 $5,500 Cash receipts $10,400 Balance on February 1 Receipta Disbursements Balance on February 28 Amount $6,100 10,400 (5.500) $11,000 Information from February's bank statement and company records reveals the following additional information: a a. The ending cash balance recorded in the bank statement is $8,630. b. Cash receipts of $900 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 $2,500 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 $4,840 for legal fees expense and $450 for entertainment expense. h. In January, one of Reynolds's suppliers, Titanic Fabrics, borrowed $4,600 from Reynolds. On February 24, Titanic paid $4,750 ($4,600 borrowed amount plus $150 interest) directly to Academy Bank in payment for January's borrowing 1. Academy Bank charged service fees of $130 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 adiustments BE Next Drow 1 of 1 Required 1 Required 2 Prepare a bank reconciliation for Reynolds's checking account on February 28, 2024. (Amounts to be deducted should be Indicated with a minus sign.) Bank's Cash Balance REYNOLDS'S RED CARPET STORE Bank Reconciliation February 28, 2024 Company's Cash Balance 8,630 Per general ledger 900 250 $ 1,200 Per bank statement Deposits outstanding Checks outstanding Checks outstanding $ 8,080 Company balance per reconciliation Bank balance per reconciliation 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

Step: 3

blur-text-image

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

IATF 16949 2016 Plus ISO 9001 2015 Audit Guide And Checklist With ISO 9001 Customer Specific Core Tools And CQI Requirments

Authors: Patrick Ambrose, Systemsthinking .works

2nd Edition

154703355X, 978-1547033553

More Books

Students also viewed these Accounting questions

Question

Describe the new structures for the HRM function. page 676

Answered: 1 week ago