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 Dec. Dec. Dec. 19 Dec. Dec. Dec. Dec. 1,900 1,860 Beginning Balance Deposits and other Credits: Dec. 1 Dec. 5 Dec. 10 Dec. 15 Dec. 18 Dec. 22 Checks and other Debits: 8 11 (check no. 1416) Check No. 22 (check no. 1417) 29 (check no. 1418) 31 (check no. 1419) 31 Ending Balance Cash Payments 1416 1417 1418 1419 1420 1421 1422 Bank Statement for December Davidson's Cash account shows a balance of $17,450 at December 31. On December 31, Davidson Insurance received the following bank statement: EFT BC NSF Cash Credit EFT SC $ 810 180 $ 350 4,240 550 600 1,900 1,400 630 400 810 225 180 630 1,930 10 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 Internal Cont Learning O 1. Adjusted 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 reconciliarion and joiarad entries Davidson's Castr account shows a balince of $17,450 is December 31 . Ona December 31. Davidson Instance received the following bank statcmenn. Explanations: BC-bank collection; EFT-electronic functs transfers NSF-nonsufficient funds checks-SC-service tharge Additional data for the bank reconcliation 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 customet. c. The $1,400 bank collection was for a note reccivable. d. The correct amount of check no, 1419, for rent expense, is $1,930. Daviduan's controller mistakenly recorded the check for $1,390