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Wilbur's Red Carpet Store maintains a checking account with Academy Bank. Wilbur'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 $2,600 2,200 3,100 4,000 1,500 $13,400 Balance on February 1 Receipts Disbursements Balance on February 28 Checks: Number 323 324 325 326 327 Date 2/12 2/19 2/27 2/28 2/28 a. The ending cash balance recorded in the bank statement is $11,570. o. Cash receipts of $1,500 from 2/26-2/28 are outstanding. c. Checks 325 and 327 are outstanding. Amount $6,700 13,400 (7,700) $12,400 Information from February's bank statement and company records reveals the following additional information: Amount $2,400 2,100 450 950 1,800 $7,700 Required: 1. Prepare a bank reconciliation for Wilbur's checking account on February 28, 2024. 2. Record the necessary cash adjustments. d. The deposit on 2/11 includes a customer's check for $450 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 Wilbur's February rent was made on February 4 for $1,300. g. Debit card transactions include $4,790 for legal fees expense and $400 for entertainment expense. h. In January, one of Wilbur's suppliers, Titanic Fabrics, borrowed $5,800 from Wilbur. On February 24, Titanic paid $5,950 ($5,800 borrowed amount plus $150 interest) directly to Academy Bank in payment for January's borrowing. i. Academy Bank charged service fees of $190 to Wilbur's for the month.

Wilbur's Red Carpet Store maintains a checking account with Academy Bank. Wilbur'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 $2,600 2,200 3,100 4,000 1,500 $13,400 Balance on February 1 Receipts Disbursements Balance on February 28 Checks: Number 323 324 325 326 327 Date 2/12 2/19 2/27 2/28 2/28 a. The ending cash balance recorded in the bank statement is $11,570. o. Cash receipts of $1,500 from 2/26-2/28 are outstanding. c. Checks 325 and 327 are outstanding. Amount $6,700 13,400 (7,700) $12,400 Information from February's bank statement and company records reveals the following additional information: Amount $2,400 2,100 450 950 1,800 $7,700 Required: 1. Prepare a bank reconciliation for Wilbur's checking account on February 28, 2024. 2. Record the necessary cash adjustments. d. The deposit on 2/11 includes a customer's check for $450 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 Wilbur's February rent was made on February 4 for $1,300. g. Debit card transactions include $4,790 for legal fees expense and $400 for entertainment expense. h. In January, one of Wilbur's suppliers, Titanic Fabrics, borrowed $5,800 from Wilbur. On February 24, Titanic paid $5,950 ($5,800 borrowed amount plus $150 interest) directly to Academy Bank in payment for January's borrowing. i. Academy Bank charged service fees of $190 to Wilbur's for the month.

College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter6: Bank Accounts, Cash Funds, And Internal Controls
Section: Chapter Questions
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Wilbur's Red Carpet Store maintains a checking account with Academy Bank. Wilbur'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 Balance on February 1 Receipts Disbursements Balance on February 28 Amount $2,600 2,200 3,100 4,000 1,500 $13,400 Amount $6,700 13,400 (7,700) $12,400 Checks: Number 323 324 325 326 327 Date 2/12 2/19 2/27 2/28 2/28 a. The ending cash balance recorded in the bank statement is $11,570. b. Cash receipts of $1,500 from 2/26-2/28 are outstanding. c. Checks 325 and 327 are outstanding. Amount $2,400 2,100 Information from February's bank statement and company records reveals the following additional information: 450 950 1,800 $7,700 Required: 1. Prepare a bank reconciliation for Wilbur's checking account on February 28, 2024. 2. Record the necessary cash adjustments. d. The deposit on 2/11 includes a customer's check for $450 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 Wilbur's February rent was made on February 4 for $1,300. g. Debit card transactions include $4,790 for legal fees expense and $400 for entertainment expense. h. In January, one of Wilbur's suppliers, Titanic Fabrics, borrowed $5,800 from Wilbur. On February 24, Titanic paid $5,950 ($5,800 borrowed amount plus $150 interest) directly to Academy Bank in payment for January's borrowing. i. Academy Bank charged service fees of $190 to Wilbur's for the month.
Transcribed Image Text:Wilbur's Red Carpet Store maintains a checking account with Academy Bank. Wilbur'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 Balance on February 1 Receipts Disbursements Balance on February 28 Amount $2,600 2,200 3,100 4,000 1,500 $13,400 Amount $6,700 13,400 (7,700) $12,400 Checks: Number 323 324 325 326 327 Date 2/12 2/19 2/27 2/28 2/28 a. The ending cash balance recorded in the bank statement is $11,570. b. Cash receipts of $1,500 from 2/26-2/28 are outstanding. c. Checks 325 and 327 are outstanding. Amount $2,400 2,100 Information from February's bank statement and company records reveals the following additional information: 450 950 1,800 $7,700 Required: 1. Prepare a bank reconciliation for Wilbur's checking account on February 28, 2024. 2. Record the necessary cash adjustments. d. The deposit on 2/11 includes a customer's check for $450 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 Wilbur's February rent was made on February 4 for $1,300. g. Debit card transactions include $4,790 for legal fees expense and $400 for entertainment expense. h. In January, one of Wilbur's suppliers, Titanic Fabrics, borrowed $5,800 from Wilbur. On February 24, Titanic paid $5,950 ($5,800 borrowed amount plus $150 interest) directly to Academy Bank in payment for January's borrowing. i. Academy Bank charged service fees of $190 to Wilbur's for the month.
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