P7-33B Preparing a bank reconciliation and journal entries The May cash records of Donald Insurance follow: Cash Receipts Cash Payments Check No. 1416 1417 1418 1419 1420 1421 1422 Date Cash Debit Cash Credit $ 4,230 520 530 1,950 1,840 890 120 630 1,090 1,420 900 670 May 4 14 17 31 Donald's Cash account shows a balance of $17,750 at May 31. On May 31, Donald Insurance received the following bank statement: Inter Bank Statement for May Beginning Balance Deposits and other Credits $14,400 May 1 May 5 May 10 May 15 May 18 May 22 EFT $ 450 4,230 520 530 1,950 BC 1,700 9,380 Checks and other Debits: May 8 May 11 icheck no. 1416) May 19 May 22 (crack no. 1417) May 29 (check no. 1418) May 31 (check no. 1419) May 31 NSF 1,100 890 EFT 375 120 630 1,900 Sc 35 (5,050) - $18,730 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. d. The cor The $1,700 bank collection was for a note receivable. rect amount of check 1419, for rent expense, is $1,900. Donald's controller mistakenly recorded the check for $1,090