ces Reynolds's Red Carpet Store maintains a checking account with Academy Bank. Reynolds's sells carpet each day but makes Ball deposits only once per week. The following provides information from the company's cash ledger for the month ending February 28, 2024. Date Amount Number Date Amount Deposits: 2/4 $2,550 Checks: 323 2/12 $2,350 2/11 2,150 324 2/19 2,050 2/18 3,050 325 2/27 400 2/25 3,950 326 2/28 900 Cash 2/26- 1,450 327 2/28 1,750 receipts: 2/28 $13,150 $7,450 Amount Balance on February 1 $6,650 Receipts 13,150 Disbursements (7,450) Balance on February 28 $12,350 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 $11,685. b. Cash receipts of $1,450 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 $2,800 for advertising in February. The bank properly recorded the check for this amount. f. An EFT withdrawal for Reynolds's February rent was made on February 4 for $1,100. g. Debit card transactions include $4,780 for legal fees expense and $400 for entertainment expense. h. In January, one of Reynolds's suppliers, Titanic Fabrics, borrowed $5,700 from Reynolds. On February 24, Titanic paid $5,950 ($5,700 borrowed amount plus $250 interest) directly to Academy Bank in payment for January's borrowing. 1. Academy Bank charged service fees of $185 to Reynolds's for the month. Required: 1. Prepare a bank reconciliation for Reynolds's checking account on February 28, 2024. 2. Record the necessary cash adjustments. Next
ces Reynolds's Red Carpet Store maintains a checking account with Academy Bank. Reynolds's sells carpet each day but makes Ball deposits only once per week. The following provides information from the company's cash ledger for the month ending February 28, 2024. Date Amount Number Date Amount Deposits: 2/4 $2,550 Checks: 323 2/12 $2,350 2/11 2,150 324 2/19 2,050 2/18 3,050 325 2/27 400 2/25 3,950 326 2/28 900 Cash 2/26- 1,450 327 2/28 1,750 receipts: 2/28 $13,150 $7,450 Amount Balance on February 1 $6,650 Receipts 13,150 Disbursements (7,450) Balance on February 28 $12,350 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 $11,685. b. Cash receipts of $1,450 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 $2,800 for advertising in February. The bank properly recorded the check for this amount. f. An EFT withdrawal for Reynolds's February rent was made on February 4 for $1,100. g. Debit card transactions include $4,780 for legal fees expense and $400 for entertainment expense. h. In January, one of Reynolds's suppliers, Titanic Fabrics, borrowed $5,700 from Reynolds. On February 24, Titanic paid $5,950 ($5,700 borrowed amount plus $250 interest) directly to Academy Bank in payment for January's borrowing. 1. Academy Bank charged service fees of $185 to Reynolds's for the month. Required: 1. Prepare a bank reconciliation for Reynolds's checking account on February 28, 2024. 2. Record the necessary cash adjustments. Next
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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ACCT 101-503
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Reynolds's Red Carpet Store maintains a checking account with Academy Bank. Reynolds'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.
Date
Amount
Number
Date
Amount
Deposits:
2/4
$2,550
Checks:
323
2/12
$2,350
2/11
2,150
324
2/19
2,050
2/18
3,050
325
2/27
400
2/25
3,950
326
2/28
900
Cash
2/26-
1,450
327
2/28
1,750
receipts:
2/28
$13,150
$7,450
Amount
Balance on February 1
$6,650
Receipts
13,150
Disbursements
(7,450)
Balance on February 28
$12,350
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 $11,685.
b. Cash receipts of $1,450 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 $2,800 for advertising in February. The bank properly recorded the check for this amount.
f. An EFT withdrawal for Reynolds's February rent was made on February 4 for $1,100.
g. Debit card transactions include $4,780 for legal fees expense and $400 for entertainment expense.
h. In January, one of Reynolds's suppliers, Titanic Fabrics, borrowed $5,700 from Reynolds. On February 24, Titanic paid $5,950
($5,700 borrowed amount plus $250 interest) directly to Academy Bank in payment for January's borrowing.
1. Academy Bank charged service fees of $185 to Reynolds's for the month.
Required:
1. Prepare a bank reconciliation for Reynolds's checking account on February 28, 2024.
2. Record the necessary cash adjustments.
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