[The following information applies to the questions displayed
below.]
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, 2018.
Date Amount No. Date Amount
Deposits: 2/4 $ 2,700 Checks: 321 2/2 $ 4,700
2/11 2,300 322 2/8 400
2/18 3,200 323 2/12 2,500
2/25 4,100 324 2/19 2,200
Cash receipts: 2/26-2/28 1,600 325 2/27 200
326 2/28 700
$ 13,900 327 2/28 1,900
Balance on February 1 $ 6,800 $12,600
Receipts 13,900
Disbursements (12,600)
Balance on February 28 $ 8,100
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
$13,145.
b. Cash receipts of $1,600 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 $200
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 $1,100.
g. Oscar's checking account earns interest based on the
average daily balance. The amount of interest earned for February
is $20.
h. In January, one of Oscar's suppliers, Titanic Fabrics,
borrowed $6,000 from Oscar. On February 24, Titanic paid $6,250
($6,000 borrowed amount plus $250 interest) directly to Academy
Bank in payment for January's borrowing.
i. Academy Bank charged service fees of $125 to Oscar’s for
the month.
1.value:
10.00 pointsRequired information
Required:
1. Prepare a bank reconciliation for Oscar's checking account
on February 28, 2018. (Amounts to be deducted should be indicated
with a minus sign.)
ReferenceseBook & Resources
WorksheetDifficulty: 3 HardLearning Objective: 04-05 Reconcile
a bank statement.
Ask your instructor a questionCheck my work
2.value:
10.00 pointsRequired information
2. Record the necessary cash adjustments. (If no entry is
required for a transaction/event, select "No journal entry
required" in the first account field. Total entries to the same
account together when entering in the journal entry
carousel.)
ReferenceseBook & Resources
General JournalDifficulty: 3 HardLearning Objective: 04-05
Reconcile a bank statement.
Ask your instructor a questionCheck my work