[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. Date Amount No. Date Amount $ 2,000 Checks: 1,600 Deposits: 2/4 321 2/2 $4,000 322 323 2/11 2/8 450 2/18 2,500 2/12 1,800 2/25 3,400 324 2/19 1,500 Cash receipts: 2/26-2/28 900 325 2/27 250 $10,400 326 2/28 750 327 2/28 1,200 Balance on February 1 $ 6,100 $9,950 Receipts 10,400 (9,950) $ 6,550 Disbursements 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 $9,610. b. Cash receipts of $900 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 $2,500 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 $1,300. g. Oscar's checking account earns interest based on the average daily balance. The amount of interest earned for February is $130. h. In January, one of Oscar's suppliers, Titanic Fabrics, borrowed $4,600 from Oscar. On February 24, Titanic paid $4,750 ($4,600 borrowed amount plus $150 interest) directly to Academy Bank in payment for January's borrowing. i. Academy Bank charged service fees of $120 to Oscar's for the month.
[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. Date Amount No. Date Amount $ 2,000 Checks: 1,600 Deposits: 2/4 321 2/2 $4,000 322 323 2/11 2/8 450 2/18 2,500 2/12 1,800 2/25 3,400 324 2/19 1,500 Cash receipts: 2/26-2/28 900 325 2/27 250 $10,400 326 2/28 750 327 2/28 1,200 Balance on February 1 $ 6,100 $9,950 Receipts 10,400 (9,950) $ 6,550 Disbursements 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 $9,610. b. Cash receipts of $900 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 $2,500 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 $1,300. g. Oscar's checking account earns interest based on the average daily balance. The amount of interest earned for February is $130. h. In January, one of Oscar's suppliers, Titanic Fabrics, borrowed $4,600 from Oscar. On February 24, Titanic paid $4,750 ($4,600 borrowed amount plus $150 interest) directly to Academy Bank in payment for January's borrowing. i. Academy Bank charged service fees of $120 to Oscar's for the month.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![[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.
Date
Amount
No.
Date
Amount
Deposits:
2/4
$ 2,000 Checks:
321
2/2
$4,000
2/11
1,600
322
2/8
450
2/18
2,500
323
2/12
1,800
2/25
3,400
324
2/19
1,500
Cash receipts:
2/26-2/28
900
325
2/27
250
$10,400
326
2/28
750
327
2/28
1,200
Balance on February 1
$ 6,100
$9,950
Receipts
10,400
Disbursements
(9,950)
Balance on February 28
$ 6,550
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 $9,610.
b. Cash receipts of $900 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 $2,500 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 $1,300.
g. Oscar's checking account earns interest based on the average daily balance. The amount of interest
earned for February is $130.
h. In January, one of Oscar's suppliers, Titanic Fabrics, borrowed $4,600 from Oscar. On February 24, Titanic
paid $4,750 ($4,600 borrowed amount plus $150 interest) directly to Academy Bank in payment for
January's borrowing.
i. Academy Bank charged service fees of $120 to Oscar's for the month.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7a2072a9-7aab-4b43-b0e1-0ef1854c9c71%2F4650dd30-e468-4b4a-a66f-d114df039e35%2Ftgyag9w_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[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.
Date
Amount
No.
Date
Amount
Deposits:
2/4
$ 2,000 Checks:
321
2/2
$4,000
2/11
1,600
322
2/8
450
2/18
2,500
323
2/12
1,800
2/25
3,400
324
2/19
1,500
Cash receipts:
2/26-2/28
900
325
2/27
250
$10,400
326
2/28
750
327
2/28
1,200
Balance on February 1
$ 6,100
$9,950
Receipts
10,400
Disbursements
(9,950)
Balance on February 28
$ 6,550
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 $9,610.
b. Cash receipts of $900 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 $2,500 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 $1,300.
g. Oscar's checking account earns interest based on the average daily balance. The amount of interest
earned for February is $130.
h. In January, one of Oscar's suppliers, Titanic Fabrics, borrowed $4,600 from Oscar. On February 24, Titanic
paid $4,750 ($4,600 borrowed amount plus $150 interest) directly to Academy Bank in payment for
January's borrowing.
i. Academy Bank charged service fees of $120 to Oscar's for the month.
Transcribed Image Text: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.)
View transaction list
View journal entry worksheet
No
Transaction
General Journal
Debit
Credit
1
1
Cash
4,880
Interest Revenue
280
Notes Receivable
4,600
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