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.

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 $13,145.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 (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 $20.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 service fees of $125 to Oscar?s for the month.

Required:1. Prepare a bank reconciliation for Oscar?s checking account on February 28, 2021.2. Record the necessary cash adjustments.

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Date Amount NO. Date Amount $ 2,700 Checks: $ 4,700 Deposits: 2/4 321 2/2 322 2/11 2,300 2/8 400 3,200 323 2,500 2/18 2/12 2/25 4,100 324 2/19 2,200 2/27 Cash recelpts: 2/26-2/28 1,600 $ 13,900 325 200 326 2/28 700 1,900 $12,600 327 2/28 $ 6,800 Balance on February 1 Recelpts Disbursements 13,900 (12,600) $ 8,100 Balance on February 28