In: Accounting
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 | Amount | No. | Date | Amount | |||||||
Deposits: | 2/4 | $ | 2,000 | Checks: | 321 | 2/2 | $ | 4,000 | |||
2/11 | 1,600 | 322 | 2/8 | 450 | |||||||
2/18 | 2,500 | 323 | 2/12 | 1,800 | |||||||
2/25 | 3,400 | 324 | 2/19 | 1,500 | |||||||
Cash receipts: | 2/26-2/28 | 900 | 325 | 2/27 | 250 | ||||||
$ | 10,400 | 326 | 2/28 | 750 | |||||||
327 | 2/28 | 1,200 | |||||||||
Balance on February 1 | $ | 6,100 | $ | 9,950 | |||||||
Receipts | 10,400 | ||||||||||
Disbursements | (9,950 | ) | |||||||||
Balance on February 28 | $ | 6,550 | |||||||||
Information from February's bank statement and company records
reveals the following additional information:
Required:
1. Prepare a bank reconciliation for Oscar's checking
account on February 28, 2021. (Amounts to be deducted
should be indicated with a minus sign. Total entries to the same
account together when entering in the bank
reconciliation.)