7-27A Preparing a bank reconciliation and journal entries The December cash records of Davidson Insurance follow: Cash Receipts Cash Payments Date Dec. 4 Cash Debit $4,240 Cash Credit S 810 180 550 14 600 Check No. 1416 1417 1418 1419 1420 1421 1.900 1,860 630 1,390 1,490 700 600 1422 Davidson's Cash account shows a balance of $17,450 at December 31. On December 31, Davidson Insurance received the following bank statement: $ 14,100 9,040 Bank Statement for December Beginning Balance Deposits and other Credits: Dec. 1 EFT S 350 Dec. 5 4,240 Dec. 10 550 Dec. 15 Dec. 18 1,900 Dec. 22 1,400 Checks and other Debits: Dec. 8 400 Dec. 11 (check no. 1416) 810 Dec. 19 Dec. 22 (check no. 1417) Dec. 29 (check no. 1418) 630 Dec 31 (check no. 1419) 1,930 Dec. 31 SC 10 Ending Balance TBD (4,185 $ 18,955 Explanations: BC-bank collection EFT-electronic funds transfer, NSF-nonsufficient funds checks: 5C-service charge Additional data for the bank reconciliation follow a. The EFT credit was a receipt of rent. The EFT debit was an insurance payment. b. The NSF check was received from a customer. c. The $1,400 bank collection was for a note receivable. d. The correct amount of check no. 1419, for rent expense, is $1,930. Davidson's controller mistakenly recorded the check for $1,390. Requirements 1. Prepare the bank reconciliation of Davidson Insurance a 2. Journalize any required entries from the bank reconciliation. tion of Davidson Insurance at December 31, 2018