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, 2024. Date Amount Number Date Amount Deposits: 2/4 $2,700 Checks: 323 2/12 $2,500 2/11 2,300 324 2/19 2,200 2/18 3,200 325 2/27 200 2/25 4,100 326 2/28 700 Cash 2/26- 1,600 327 receipts: 2/28 1,900 2/28 $13,900 $7,500 Amount Balance on February 1 $6,800 Receipts 13,900 Disbursements (7,500) Balance on February 28 $13,200 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 EFT withdrawal for Oscar's February rent was made on February 4 for $1,100. g. Debit card transactions include $4,700 for legal fees expense and $400 for entertainment expense. h. In January, one of Oscar's suppliers, Titanic Fabrics, borrowed $6,000 from Oscar. On February 24, Titanic paid $6,270 ($6,000 borrowed amount plus $270 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. Required: 1. Prepare a bank reconciliation for Oscar's checking account on February 28, 2024. 2. Record the necessary cash adjustments. Complete this question by entering your answers in the tabs below. Required Required 1 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.) View transaction list View journal entry worksheet No Transaction General Journal 1 1 Cash Notes Receivable Interest Revenue 2 2 Accounts Receivable Advertising Expense Rent Expense Service Fee Expense Debit Credit 6,270 6,000 270 Cash < Required 1 Required 2 > 200 300 1,100 125 1,725

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, 2024. Date Amount Number Date Amount Deposits: 2/4 $2,700 Checks: 323 2/12 $2,500 2/11 2,300 324 2/19 2,200 2/18 3,200 325 2/27 200 2/25 4,100 326 2/28 700 Cash 2/26- 1,600 327 receipts: 2/28 1,900 2/28 $13,900 $7,500 Amount Balance on February 1 $6,800 Receipts 13,900 Disbursements (7,500) Balance on February 28 $13,200 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 EFT withdrawal for Oscar's February rent was made on February 4 for $1,100. g. Debit card transactions include $4,700 for legal fees expense and $400 for entertainment expense. h. In January, one of Oscar's suppliers, Titanic Fabrics, borrowed $6,000 from Oscar. On February 24, Titanic paid $6,270 ($6,000 borrowed amount plus $270 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. Required: 1. Prepare a bank reconciliation for Oscar's checking account on February 28, 2024. 2. Record the necessary cash adjustments. Complete this question by entering your answers in the tabs below. Required Required 1 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.) View transaction list View journal entry worksheet No Transaction General Journal 1 1 Cash Notes Receivable Interest Revenue 2 2 Accounts Receivable Advertising Expense Rent Expense Service Fee Expense Debit Credit 6,270 6,000 270 Cash < Required 1 Required 2 > 200 300 1,100 125 1,725

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter6: Bank Accounts, Cash Funds, And Internal Controls

Section: Chapter Questions

Problem 1PB

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