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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	Amount				No.	Date	Amount
Deposits:	2/4	$	1,950		Checks:	321	2/2	$	3,950
	2/11		1,550			322	2/8		400
	2/18		2,450			323	2/12		1,750
	2/25		3,350			324	2/19		1,450
Cash receipts:	2/26-2/28		850			325	2/27		200
		$	10,150			326	2/28		700
						327	2/28		1,150
Balance on February 1		$	6,050					$	9,600
Receipts			10,150
Disbursements			(9,600	)
Balance on February 28		$	6,600

Information from February's bank statement and company records reveals the following additional information:

1. The ending cash balance recorded in the bank statement is $9,675.
2. Cash receipts of $850 from 2/26–2/28 are outstanding.
3. Checks 325 and 327 are outstanding.
4. The deposit on 2/11 includes a customer's check for $200 that did not clear the bank (NSF check).
5. Check 323 was written for $2,500 for advertising in February. The bank properly recorded the check for this amount.
6. An automatic withdrawal for Oscar's February rent was made on February 4 for $1,200.
7. Oscar's checking account earns interest based on the average daily balance. The amount of interest earned for February is $125.
8. In January, one of Oscar's suppliers, Titanic Fabrics, borrowed $4,500 from Oscar. On February 24, Titanic paid $4,700 ($4,500 borrowed amount plus $200 interest) directly to Academy Bank in payment for January's borrowing.
9. Academy Bank charged service fees of $100 to Oscar’s for the month.

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.)

Answer 1