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, 2015.

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 $13,325.
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 (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 automatic withdrawal for Oscar€™s February rent was made on February 4 for $1,100.
g. Oscar€™s checking account earns interest based on the average daily balance. The amount of interest earned for February is $200.
h. In January, one of Oscar€™s suppliers, Titanic Fabrics, borrowed $6,000 from Oscar. On February 24, Titanic paid $6,250 ($6,000 borrowed amount plus $250 interest) directly to Academy Bank in payment for January€™s borrowing.
i. Academy Bank charged the following service fees to Oscar€™s: $60 for NSF check, $15 for automatic withdrawal for rent payment, and $50 for collection of the loan amount from Titanic.

Required:
1. Prepare a bank reconciliation for Oscar€™s checking account on February 28, 2015.
2. Record the necessary cashadjustments.

Date Amount No. Date Amount $2,700 Checks: 321 2 4,700 400 2,500 2,200 200 700 1,900 $12,600 Deposits: 2/4 2,300 3,200 4,100 1,600 $13,900 322 2/8 323 2/12 324 2/19 325 2/27 326 2/28 327 2/28 2/18 2/25 Cash receipts: 2/26-2/281 Balance on February 1 Receipts Disbursements Balance on February 28 $6,800 13,900 12,600