Answer:
A. Cash balance as per bank $11,020.00
Cash balance as per books $11,020.00
B. 28-Feb
Dr Cash $6,140.00
Cr To Note receivables $5,800.00
Cr To Interest Revenue $340.00
28-Feb
Dr Accounts Receivables $450.00
Dr Advertising expense $400.00
Dr Rent expense $1,300.00
Dr Miscellaneous expense $120.00
Cr To Cash $2,270.00
Explanation:
Preparation of a bank reconciliation for Oscar's checking account on February 28, 2021.
OSCAR'S RED CARPET Bank Reconciliation - February 28
BANK'S CASH BALANCE
Ending balance as per Bank Statements $11,770.00
Add Outstanding Deposits $1,500.00
Less Outstanding Checks ($2,250.00)
($450 + $1,800)
Cash balance as per bank $11,020.00
COMPANY'S CASH BALANCE
Ending Balance as per cash books $7,150.00
Note Collection (including interest) $5,950.00
Interest earned $190.00
Less: NSF Cheque ($450.00)
Incorrect recording of check 323 ($400.00)
Rent withdrawl ($1,300.00)
Service charge ($120.00)
Cash balance as per books $11,020.00
Therefore the bank reconciliation for Oscar's checking account on February 28, 2021 will be:
Cash balance as per bank $11,020.00
Cash balance as per books $11,020.00
2. Preparation to Record the necessary cash adjustments.
Journal Entries - Oscar's Red Carpet
28-Feb
Dr Cash $6,140.00
Cr To Note receivables $5,800.00
Cr To Interest Revenue $340.00
(To record reconciliation items that increases in cash)
28-Feb
Dr Accounts Receivables $450.00
Dr Advertising expense $400.00
Dr Rent expense $1,300.00
Dr Miscellaneous expense $120.00
Cr To Cash $2,270.00
(To record reconciliation items that decreases cash)
