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Blaine's Red Carpet Store maintains a checking account with Academy Bank. Blaine'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. Deposits: Cash receipts: Date 2/4 2/11 2/18 2/25 2/26-2/28 Amount $2,650 2,250 3, 150 4,050 1,550 $13, 650 Amount Checks: $6,750 13,650 (7,450) $12,950 Number 323 324 325 326 327 Date 2/12 2/19 2/27 2/28 2/28 Amount $2,450 2,150 Balance on February 11 Receipts Disbursements Balance on February 28 Information from February's bank statement and company records reveals the following additional information: 250 750 1,850 $7,450 a. The ending cash balance recorded in the bank statement is $12,355. b. Cash receipts of $1,550 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 $250 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 Blaine's February rent was made on February 4 for $1,200. Required: 1. Prepare a bank reconciliation for Blaine's checking account on February 28, 2024. 2. Record the necessary cash adjustments. g. Debit card transactions include $4,800 for legal fees expense and $450 for entertainment expense. h. In January, one of Blaine's suppliers, Titanic Fabrics, borrowed $5,900 from Blaine. On February 24, Titanic paid $6,100 ($5,900 borrowed amount plus $200 interest) directly to Academy Bank in payment for January's borrowing. i. Academy Bank charged service fees of $195 to Blaine's for the month.

Blaine's Red Carpet Store maintains a checking account with Academy Bank. Blaine'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. Deposits: Cash receipts: Date 2/4 2/11 2/18 2/25 2/26-2/28 Amount $2,650 2,250 3, 150 4,050 1,550 $13, 650 Amount Checks: $6,750 13,650 (7,450) $12,950 Number 323 324 325 326 327 Date 2/12 2/19 2/27 2/28 2/28 Amount $2,450 2,150 Balance on February 11 Receipts Disbursements Balance on February 28 Information from February's bank statement and company records reveals the following additional information: 250 750 1,850 $7,450 a. The ending cash balance recorded in the bank statement is $12,355. b. Cash receipts of $1,550 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 $250 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 Blaine's February rent was made on February 4 for $1,200. Required: 1. Prepare a bank reconciliation for Blaine's checking account on February 28, 2024. 2. Record the necessary cash adjustments. g. Debit card transactions include $4,800 for legal fees expense and $450 for entertainment expense. h. In January, one of Blaine's suppliers, Titanic Fabrics, borrowed $5,900 from Blaine. On February 24, Titanic paid $6,100 ($5,900 borrowed amount plus $200 interest) directly to Academy Bank in payment for January's borrowing. i. Academy Bank charged service fees of $195 to Blaine's for the month.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Blaine's Red Carpet Store maintains a checking account with Academy Bank. Blaine'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. Deposits: Date 2/4 2/11 2/18 2/25 Cash receipts: 2/26-2/28 Amount $2,650 2,250 3, 150 4,050 1,550 $13, 650 Amount Checks: $6,750 13,650 (7,450) $12,950 Number 323 324 325 326 327 Date 2/12 2/19 2/27 2/28 2/28 Amount $2,450 2,150 Balance on February 1 Receipts Disbursements Balance on February 28 Information from February's bank statement and company records reveals the following additional information: 250 750 1,850 $7,450 a. The ending cash balance recorded in the bank statement is $12,355. b. Cash receipts of $1,550 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 $250 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 Blaine's February rent was made on February 4 for $1,200. Required: 1. Prepare a bank reconciliation for Blaine's checking account on February 28, 2024. 2. Record the necessary cash adjustments. g. Debit card transactions include $4,800 for legal fees expense and $450 for entertainment expense. h. In January, one of Blaine's suppliers, Titanic Fabrics, borrowed $5,900 from Blaine. On February 24, Titanic paid $6,100 ($5,900 borrowed amount plus $200 interest) directly to Academy Bank in payment for January's borrowing. i. Academy Bank charged service fees of $195 to Blaine's for the month.
Transcribed Image Text:Blaine's Red Carpet Store maintains a checking account with Academy Bank. Blaine'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. Deposits: Date 2/4 2/11 2/18 2/25 Cash receipts: 2/26-2/28 Amount $2,650 2,250 3, 150 4,050 1,550 $13, 650 Amount Checks: $6,750 13,650 (7,450) $12,950 Number 323 324 325 326 327 Date 2/12 2/19 2/27 2/28 2/28 Amount $2,450 2,150 Balance on February 1 Receipts Disbursements Balance on February 28 Information from February's bank statement and company records reveals the following additional information: 250 750 1,850 $7,450 a. The ending cash balance recorded in the bank statement is $12,355. b. Cash receipts of $1,550 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 $250 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 Blaine's February rent was made on February 4 for $1,200. Required: 1. Prepare a bank reconciliation for Blaine's checking account on February 28, 2024. 2. Record the necessary cash adjustments. g. Debit card transactions include $4,800 for legal fees expense and $450 for entertainment expense. h. In January, one of Blaine's suppliers, Titanic Fabrics, borrowed $5,900 from Blaine. On February 24, Titanic paid $6,100 ($5,900 borrowed amount plus $200 interest) directly to Academy Bank in payment for January's borrowing. i. Academy Bank charged service fees of $195 to Blaine's for the month.
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