Question

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 is not complete. OSCAR'S RED CARPET STORE Bank Reconciliation February 28, 2021 Bank's Cash Balance Company's Cash Balance Per bank statement $ 11,770 Per general ledger Deposits outstanding 1,500 Company error Checks outstanding 2,000 % $ 7,150 (650) Bank balance per reconciliation Company balance per reconciliation
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Answer 1

Solution 1:

Oscar's Red Carpet
Bank Reconciliation - February 28
Bank's Cash balance		Company's cash balance
Particulars	Amount	Particulars	Amount
Ending balance as per Bank Statements	$11,770.00	Ending Balance as per cash books	$7,150.00
Additions:		Additions:
Outstanding Deposits	$1,500.00	Note Collection (including interest)	$5,950.00
		Interest earned	$190.00
Deductions:		Deductions:
Outstanding Checks ($450 + $1,800)	$2,250.00	NSF Cheque	$450.00
		Incorrect recording of check 323	$400.00
		Rent withdrawl	$1,300.00
		Service charge	$120.00
Up to date cash balance as per bank	$11,020.00	Up to date cash balance as per books	$11,020.00