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Typed only 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
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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. Date Alpunt Deposits: 2/4 Amunt $ 2,229 Checks: 1,900 2/11 2/18 2/25 2/26-2/28 No. Date 3212/2 322 2/8 323 2/12 324 2/19 3252/27 326 2/28 327 2/28 3,700 1,200 $ 11,999 Cash receipts: 2,199 1,200 400 900 1,500 $11,699 Balance on February 1 Receipts Disbursements Balance on February 28 $ 6,400 11,989 (11,690) $ 6,700 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 $10,390 b. Cash receipts of $1,200 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 $400 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 $1,300. g. Oscar's checking account earns Interest based on the average daily balance. The amount of Interest earned for February Is $160. h. In January, one of Oscar's suppliers, Titanic Fabrics, borrowed $5,200 from Oscar. On February 24, Titanic paid $5,350 ($5,200 borrowed amount plus $150 Interest) directly to Acaderty Bank in payment for January's borrowing. 1. Academy Bank charged service fees of $120 to Oscar's for the month. 2. Record the necessary cash adjustments. If no entry is required for a transaction/event, select "No Journal Entry Required" In the first account fleld. Total entrles to the same account together when entering in the Journal entry worksheet.) * Answer is not complete. No Transaction General Journal Credit Debit 5,510 Cash Interest Revenue Notes Receivable 310 5,200 2 120 Service Fee Expense Cash 120 XStep by Step Solution
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