The May cash records of Nielson, Inc., follow:

Nielson’s Cash account shows the balance of $6,171 on May 31. On May 31, Nielson, Inc., received the following bank statement:

Additional data for the bank reconciliation:

a. The EFT deposit was a receipt of rent revenue. The EFT debit was payment of insurance expense.

b. The NSF check was received from a customer.

c. The $1,000 bank collection was for a note receivable.

d. The correct amount of check 1419 is $216. Nielson, Inc., mistakenly recorded the check for $126.
Requirement 1. Prepare Nielson’s bank reconciliation at May 31.

Transcribed Image Text:

Cash Receipts (CR) Cash Payments (CP) Date May 4 9 Cash Debit Check No. Cash Credit $2,716 1416 $ 8 544 1417 775 14 896 1418 88 17 367 1419 126 31 2,037 1420 970 1421 200 1422 2,267