Can you explain how this should be properly accounted for

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Can you explain how this should be properly accounted for? I’m having trouble filling out the journal entry.
SF W21 ACG2021.001: FIN ACCT
9 Question 3 - Chapter 4 Exercis x
+
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3.
Chec
ending Fepruary 28, 20T.
Date
Amount
No.
Date
Amount
Deposits:
2/4
$ 4,700
2,700
2,300
3,200
4,100
1,600
Checks:
321
2/2
2/11
322
2/8
400
2/18
2,500
2,200
Part 2 of 2
323
2/12
2/25
2/26-2/28
324
2/19
Cash receipts:
325
2/27
200
$ 13,900
326
2/28
700
327
2/28
1,900
еBook
Balance on February 1
$
6,800
$12,600
Receipts
Disbursements
13,900
(12,600)
References
Balance on February 28
$
8,100
Information from February's bank statement and
ompany 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 automatic withdrawal for Oscar's February rent was made on February 4 for $1,100.
g. 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 suppliers, 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.
i. Academy Bank charged service fees of $125 to Oscar's for the month.
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Transcribed Image Text:SF W21 ACG2021.001: FIN ACCT 9 Question 3 - Chapter 4 Exercis x + A ezto.mheducation.com/ext/map/index.html?_con%3Dcon&external_browser=0&launchUrl=https%253A%252F%252Flms.mheducation.com%252Fmghmiddleware.. * Chapter 4 Exercises for practice not graded i Saved Help Save & Ex 3. Chec ending Fepruary 28, 20T. Date Amount No. Date Amount Deposits: 2/4 $ 4,700 2,700 2,300 3,200 4,100 1,600 Checks: 321 2/2 2/11 322 2/8 400 2/18 2,500 2,200 Part 2 of 2 323 2/12 2/25 2/26-2/28 324 2/19 Cash receipts: 325 2/27 200 $ 13,900 326 2/28 700 327 2/28 1,900 еBook Balance on February 1 $ 6,800 $12,600 Receipts Disbursements 13,900 (12,600) References Balance on February 28 $ 8,100 Information from February's bank statement and ompany 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 automatic withdrawal for Oscar's February rent was made on February 4 for $1,100. g. 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 suppliers, 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. i. Academy Bank charged service fees of $125 to Oscar's for the month. Mc Graw Hill Hducation < Prev 3 of 3 Next > JAN W 30
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Check
3.
Required information
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.)
Part 2 of 2
View transaction list
eBook
Journal entry worksheet
References
1
<>
Record the amounts that increase cash.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
Cash
870
Notes Receivable
600
Interest Revenue
270
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Transcribed Image Text:ext/map/indeX.html?_con=con&external_browser3D0&launchUrl=https%253A%252F%252Flms.mheducation.com%252Fmghmiddleware... Chapter 4 Exercises for practice not graded i Saved Help Save & Exit Check 3. Required information 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.) Part 2 of 2 View transaction list eBook Journal entry worksheet References 1 <> Record the amounts that increase cash. Note: Enter debits before credits. Transaction General Journal Debit Credit Cash 870 Notes Receivable 600 Interest Revenue 270 Mc Graw Hill Education < Prev of 3 Next> JAN W 30
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