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Donald's Cash account shows a balance of $17,750 at May 31. On May 31, Donald Insurance received the following bank statement: Bank Statement for May
Donald's Cash account shows a balance of $17,750 at May 31. On May 31, Donald Insurance received the following bank statement: Bank Statement for May $14,400 Beginning Balance Deposits and other Credits S 450 May 1 EFT 4,230 May 10 May 520 May 15 530 1,950 May 18 9,380 May 22 1,700 Checks and other Debits: 1,100 May 8 NSF 11 (check no. 141 6) May 890 May EFT 375 19 22 (check no. 1417) May 120 29 (check no. 1418) May 630 31 (check no. 1419) May 1,900 (5,050) May 31 SC 35 Ending Balance $18,730 Explanations: Bc-bank collection; EFT-electronic funds transfer; NSF-nonsufficient funds checks; SC-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 $1,700 bank collection was for a note receivable. d. The correct amount of check 1419, for rent expense, is $1,900. Donald's controller mistakenly recorded the check for $1,090. Requirements 1. Prepare the bank reconciliation of Donald Insurance at May 31, 2018 2. Journalize any required entries from the bank reconciliation P8-33B Preparing a bank reconciliation and journal entries The May cash records of Donald Insurance follow Cash Receipts Cash Payments Check No. Date Cash Debit Cash Credit $ 890 $4,230 1416 May 4 520 1417 120 630 14 530 1418 1,950 1,090 17 1419 31 1,840 1420 1,420 1421 900 1422 670
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