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Oscar’s Red Carpet Store maintains a checking account with Academy Bank. Oscar’s sells carpet…

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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, 2018.

Date Amount
Deposits: 2/4 $2,700
2/11 2,300
2/18 3,200
2/25 4,100
Cash receipts: 2/26-2/28 1,600
$13,900
Checks
No. Date Amount
321 2/2 $4,700
322 2/8 400
323 2/12 2,500
324 2/19 2.200
325 2/27 200
326 2/28 700
327 2/28 1,900
$12,600

Balance on February 1 $6,800
Receipts 13,900
Disbursements (12,600)
Balance on February 28 $8,100

Information from February’s bank statement and company records reveal 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.

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.

Required:

a. Prepare a bank reconciliation for Oscar?s checking account on February 28, 2018.

b. Record the necessary cash adjustments.

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