II. (20') The December cash record of ABB Insurance follow: Cash Receipts Cash Payments Date Cash Debit Check No. Cash Credit S 4,150 540 560 2,190 1,870 2416 2417 2418 2419 2420 2421 Dec 3 S 850 16 23 31 160 670 1,690 1,450 1200 2422 640 ABB Insurance's cash account shows a balance of $16,650 at December 31. On December 31, the company received the following bank statement ABB Insurance's cash account shows a balance of S16,650 at December 31. On December 31, the company received the following bank statement Bank Statement for December Beginning Balance $14,000 Deposits and other Credits Checks and other Debits Dec EFT S 400 Dec. 2 NSF 4,150 540 560 2,190 1,700 11 19 22 29 31 S 700 850 400 160 670 1,960 10 Check NO. 2416 EFT 16 24 25 Check NO.2417 Check NO. 2418 Check NO. 2419 BC SC Ending Balance$18,590 Notes: BC-bank collection; EFT-electronic funds transfer; NSF-nonsufficient funds check; SC-service charge Additional data for the bank reconciliation follows: 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 named Dunlap Chemical. c. The $1,700 bank collection was for a note receivable. d. The correct amount of Check 2419 for rent expense is $1,940 instead of $1,490 on cash records. 1) Prepare the bank reconciliation for ABB Insurance as at December 31. 2) Journalize any required entries from the bank reconciliation. 2. II. (20') The December cash record of ABB Insurance follow: Cash Receipts Cash Payments Date Cash Debit Check No. Cash Credit S 4,150 540 560 2,190 1,870 2416 2417 2418 2419 2420 2421 Dec 3 S 850 16 23 31 160 670 1,690 1,450 1200 2422 640 ABB Insurance's cash account shows a balance of $16,650 at December 31. On December 31, the company received the following bank statement ABB Insurance's cash account shows a balance of S16,650 at December 31. On December 31, the company received the following bank statement Bank Statement for December Beginning Balance $14,000 Deposits and other Credits Checks and other Debits Dec EFT S 400 Dec. 2 NSF 4,150 540 560 2,190 1,700 11 19 22 29 31 S 700 850 400 160 670 1,960 10 Check NO. 2416 EFT 16 24 25 Check NO.2417 Check NO. 2418 Check NO. 2419 BC SC Ending Balance$18,590 Notes: BC-bank collection; EFT-electronic funds transfer; NSF-nonsufficient funds check; SC-service charge Additional data for the bank reconciliation follows: 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 named Dunlap Chemical. c. The $1,700 bank collection was for a note receivable. d. The correct amount of Check 2419 for rent expense is $1,940 instead of $1,490 on cash records. 1) Prepare the bank reconciliation for ABB Insurance as at December 31. 2) Journalize any required entries from the bank reconciliation. 2
