Question

Required information Problem 4-2A Prepare the bank reconciliation and record cash adjustments (L04-5) 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, 2021 Date Amount So. Date Mount Deposits 2/4 $ 2,700 Checks: 321 2/2 $4,700 2/11 2.300 322 2/8 2/18 3.200 323 2/12 2,500 2/25 324 2719 2.200 Cash 2/26- 325 2727 200 receipts: 2/28 $ 13,900 326 2/28 700 327 2728 1.900 Balance on February 1$ 5,800 $12,600 Receipts 13,900 Disbursements 122.600) 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 $1600 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. 1. An automatic withdrawal for Oscar's February rent was made on February 4 for $1.100. 9. 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 supollers, 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, L.Academy Bank charged service fees of $125 to Oscar's for the month. Problem 4-2A Part 2 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 worksheet.) View transaction list Journal entry worksheet Record the amounts that increase cash. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal

Answer 1

1
General Journal	Debit	Credit
Cash	6270
Notes Receivable		6000
Interest Revenue		270	=250+20
2
General Journal	Debit	Credit
Accounts Receivable	200
Advertising Expense	300		=2800-2500
Rent Expense	1100
Service Charge Expense	125
Cash		1725