P7-27A Preparing a bank reconciliation and journal entries The December cash records of Davidson Insurance follow: Cash Receipts Date Dec. 4 9 14 17 31 Cash Debit $ 4,240 550 600 1,900 1,860 Check No. Beginning Balance Deposits and other Credits: Dec. 1 Dec. 5 Dec. 10 Dec. 15 Dec. 18 Dec. 22 Checks and other Debits: Dec. 8 Dec. 11 (check no. 1416) Dec. 19 Dec. 22 (check no. 1417) Dec. 29 (check no. 1418) Dec. 31 (check no. 1419) Dec. 31 Ending Balance 1416 1417 1418 1419 1420 1421 1422 Cash Payments Bank Statement for December BC Davidson's Cash account shows a balance of $17,450 at December 31. On December 31, Davidson Insurance received the following bank statement: EFT $ 350 4,240 550 600 1,900 1,400 NSF EFT Cash Credit SC $810 180 400 810 225 180 630 1,930 10 630 1,390 1,490 700 600 $ 14,100 9,040 (4,185) $ 18,955 Explanations: BC-bank collection; EFT-electronic funds transfer; NSF-nonsufficient funds checks; SC-service charge Learning O 1. Adjusted E 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.

P7-27A Preparing a bank feconciliution and fournal cntrics The December canh recotds of Devidwon Insurance fillonet Davidsani Cash account shows a balance of $17,450 ast Decenber 31 . Oo December 31, Davidson Insurance received the following bant statcinerit: Explanations: BC-bank collection EFI-electronic funds transter: NSS-nonsufficient funds cheds; 5C-service charge Additional data for the bank reconciliation follow: a. The EFT credit was a receipt of rent. The EFT debit was an insunce payment. b. The NSE check was received from a customer. c. The $1,400 bank collection was for a note receivable. d. The correct amount of check n 1419, for rent expense, is 51,930 . Davidson's controller mistakenly recorded the check for $1,390