Blaine$$s Red Carpet Store maintains a checking account with Academy Bank. Blaine$$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 $28,2024.$

Date Amount Number Date Amount

Deposits: $2/4$ $$2,500$ Checks: $3232/12$ $$2,300$

$2/112,1003242/192,000$

$2/183,0003252/27350$

$2/253,9003262/28850$

Cash receipts: $2/26-2/281,4003272/281,700$

$$12,900$ $$7,200$

Amount

Balance on February $1$ $$6,600$

Receipts $12,900$

Disbursements $(7,200)$

Balance on February $28$ $$12,300$

Information from February's bank statement and company records reveals the following additional information:

The ending cash balance recorded in the bank statement is $$11,300.$

Cash receipts of $$1,400$ from $2/262/28$ are outstanding.

Checks $325$ and $327$ are outstanding.

The deposit on $2/11$ includes a customer's check for $$350$ that did not clear the bank $($NSF check$).$

Check $323$ was written for $$2,800$ for advertising in February. The bank properly recorded the check for this amount.

An EFT withdrawal for Blaine$$s February rent was made on February $4$ for $$1,200.$

Debit card transactions include $$4,770$ for legal fees expense and $$450$ for entertainment expense.

In January, one of Blaine$$s suppliers, Titanic Fabrics, borrowed $$5,600$ from Blaine. On February $24,$ Titanic paid $$5,800($$$5,600$ borrowed amount plus $$200$ interest$)$ directly to Academy Bank in payment for January$$s borrowing.

Academy Bank charged service fees of $$180$ to Blaine$$s for the month.

Required:

$1.$ Prepare a bank reconciliation for Blaine$$s checking account on February $28,2024.$

$2.$ Record the necessary cash adjustments.

Answer rating: 100% (QA)

1 Bank Reconciliation for Blaines Red Carpet Store February 28 2024 Cash Account According to Compan... View the full answer