P7-27A Preparing a bank reconcillation and journal entries The December cash reconds of Davideon Insurance follow Internal Control and Cash 42 Learning Objective & 1. Adjusted Balance $18.025 Cash Recelpts Date Cash Debit Cash Payments Check No. Cash Credit Dec. 4 $ 4,2401416 810 180 630 1,390 1,490 700 1417 1418 550 600 17 1,9001419 1,8601420 1421 1422 31 Davidson's Cash account shows a halance of $17,450 at December 31.On December 31, Davidson Insurance received the following bank statement Beginning Balance Deposits and other Credits: 5 14,100 Dec. 1 Dec. 5 Dec. 10 Dec. 15 Dec. 18 Dec. 22 EFT $ 350 550 600 1,900 Checks and other Debits: 400 810 225 NSF 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 EFT 630 1,930 10 SC (4,185) 5 18,955 Ending Balance 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 $1,400 bank collection was for a note receivable d. The correct amount of check no. 1419, for rent expensc, is $1,930.Davidson's controller mistakenly recorded the check for $1,390