Question

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. Deposits: Date 2/4 2/11 2/18 2/25 2/26-2/28 Amount $ 2,500 Checks: 2,100 3,000 3,900 1,400 $ 12,900 No. 321 322 323 324 325 326 327 Date 2/2 2/8 2/12 2/19 2/27 2/28 2/28 Cash receipts: Amount $ 4,500 550 2,300 2,000 350 850 1,700 $12,250 Balance on February 1 Receipts Disbursements Balance on February 28 $ 6,600 12,900 (12,250) $ 7,250 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 $11,730. b. Cash receipts of $1,400 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 $350 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 $1,200. g. Oscar's checking account earns interest based on the average daily balance. The amount of interest earned for February is $180 h. In January, one of Oscar's suppliers, Titanic Fabrics, borrowed $5,600 from Oscar. On February 24, Titanic paid $5,800 ($5,600 borrowed amount plus $200 interest) directly to Academy Bank in payment for January's borrowing. i. Academy Bank charged service fees of $100 to Oscar's for the month. < Prev 7 8 of 10 Next >

why did i do wrong with 5800? and what did i missed?

Answer 1

OSCAR'S RED CARPET STORE Bank Reconciliation February 28,2021 Bank's Cash Balance Company's Cash Balance Per Bank Statement $11,730 Per General Ledger $7,250 Deposit Outstanding 1,400 NSF Check (350) Checks Outstanding (2,050) Company Error (500) EFT for Rent (1,200) Interest on Account 180 Note Collected 5,600 Interest on Note 200 Service Fees (100) Bank Balance Per Company Balance Per Reconciliation $11,080 Reconciliation $11,080 *** $5,600 will be recorded as Note Collection $200 will be recorded as Interest on Note