(The following information applies to the questions dilsplayed below. 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, 2021. No. Date Amount Date Amount $3,950 400 $1,950 Checks: 1,550 2,450 3,350 850 2/2 2/8 2/12 2/19 321 Deponits: 2/4 2/11 2/18 2/25 2/26-2/28 322 1,750 1,450 200 323 324 325 2/27 Cash receipts: $10,150 326 2/28 700 327 2/28 1,150 $9,600 Balance on Pebruary 1 $ 6,050 Receipts Disbursements 10,150 (9,600) $ 6,600 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 $9,675. b. Cash recelpts of $850 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 $2,500 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 $1,200. g. Oscar's checking account earns interest based on the average daily balance. The amount of interest earned for February is $125. h. In January, one of Oscar's suppliers, Titanic Fabrics, borrowed $4,500 from Oscar. On February 24, Titanic paid $4,700 ($4,500 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 month.
(The following information applies to the questions dilsplayed below. 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, 2021. No. Date Amount Date Amount $3,950 400 $1,950 Checks: 1,550 2,450 3,350 850 2/2 2/8 2/12 2/19 321 Deponits: 2/4 2/11 2/18 2/25 2/26-2/28 322 1,750 1,450 200 323 324 325 2/27 Cash receipts: $10,150 326 2/28 700 327 2/28 1,150 $9,600 Balance on Pebruary 1 $ 6,050 Receipts Disbursements 10,150 (9,600) $ 6,600 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 $9,675. b. Cash recelpts of $850 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 $2,500 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 $1,200. g. Oscar's checking account earns interest based on the average daily balance. The amount of interest earned for February is $125. h. In January, one of Oscar's suppliers, Titanic Fabrics, borrowed $4,500 from Oscar. On February 24, Titanic paid $4,700 ($4,500 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 month.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
(1 )record amount that increase cash
(2) record amount that decrease cash
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.)
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, 2021.
No.
Date
Amount
Date
Amount
$3,950
$ 1,950 Checks:
1,550
2,450
3,350
850
321
2/2
Deposits:
2/4
2/8
400
322
323
2/11
2/12
2/19
1,750
2/18
324
1,450
2/25
325
2/27
200
Cash receipts:
2/26-2/28
$10,150
326
2/28
700
327
2/28
1,150
$9,600
Balance on February 1
$ 6,050
Receipts
Disbursements
10,150
(9,600)
$ 6,600
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 $9,675.
b. Cash receipts of $850 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 $2,500 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 $1,200.
g. Oscar's checking account earns interest based on the average daily balance. The amount of interest earned for
February is $125.
h. In January, one of Oscar's suppliers, Titanic Fabrics, borrowed $4,500 from Oscar. On February 24, Titanic paid $4,700
($4,500 borrowed amount plus $200 interest) directly to Academy Bank in payment for January's borrowing.
L. Academy Bank charged service fees of $100 to Oscar's for the month.
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