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Favorites Bar O MM ezto.mheducation.com hm.tpx Reader Help With These k Y Chegg k 3 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 2.100 Checks 4.100 Deposits: 2/4 32 2/2 1700 322 2/8. 600 2/18 2,600 323 2/12 1,900 1,600 2/25 3,500 324 2/19 2/26 1,000 400 Cash receipts 325 2/27 2/28 326 2/28 900 10,900 1,300 327 2/28 6,200 $10,800 Balance on February 1 Receipts 10,900 10,800) Disbursements 6,300 Balance on February 28 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 $9,840. b. Cash receipts of $1,000 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 $400 that did not clear the bank (NSF check e. Check 323 was written for $2,500 for advertising in February. The bank properly recorded the check for this amount. n automatic withdrawal for Oscar's February rent was made on February 4 for $1,200 g. Oscar's checking account earns interest based on the average daily balance. The amount of interest earned for February is $140. h. In January, one of Oscar's suppliers, Titanic Fabrics, borrowed $4,800 from Oscar. On February 24, Titanic paid $5,000 ($4,800 borrowed amount plus $200 interest) directly to Academy Bank in payment for January's borrowing. i. Academy Bank charged service fees of $100 to Oscar's for the monthExplanation / Answer
BANK RECONCILATION STATEMENT
2./
A./
NO ENTRY REQUIRED
B./
OUTSTANDING CASH RECEIPT A/C............................DR $1000
TO CASH A/C $1000
C./
CASH A/C......................................................DR $1700
TO OUTSTANDING CHECK 325 & 327 $1700
D./
DISHONOURED CHECK A/C............................DR $400
TO CASH A/C $400
E./
ADVERTISING EXPENSES A/C.......................DR $600
TO CASH A/C $600
F./
RENT EXPENSES A/C.....................................DR $1200
TO CASH A/C $1200
G./
CASH A/C.......................................................DR $140
TO INTEREST INCOME A/C $140
H./
CASH A/C.......................................................DR $5000
TO LOAN (TITAN FABRIC) $4800
TO INTEREST INCOME A/C $200
I./
BANK SERVICE FEES A/C..............................DR $100
TO CASH A/C $100
BANK'S CASH BALANCE COMPANY'S CASH BALANCE PER BANK STATEMENT $9840 PER GENERAL LEDGER $6300 LESS CASH RECEIPT OUTSTANDING ($1000) ADD CHECK 325 & 327 OUTSTANDING $1700 LESS CHECKS NOT CLEARED BY BANK ($400) LESS WRONG ENTRY OF CHECK 323 ($600) LESS OSCAR'S FEBRUARY RENT ($1200) ADD INTEREST EARNNED ON CHECKIN ACCOUNT $140 ADD DIRECT PAYMENT BY THE TITAN FEBRICS $5000 LESS BANK CHARGES ($100) BANK BALANCE AS PER RECONCILATION $9840 COMPANY'S BALANCE AS PER RECONCILATION $9840Related Questions
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