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P8-33B Preparing a bank reconciliation and journal entries Learning Objective 6 The May cash records of Donald Insurance follow: 1. Adjusted Balance $17,580 Cash Receipts
P8-33B Preparing a bank reconciliation and journal entries Learning Objective 6 The May cash records of Donald Insurance follow: 1. Adjusted Balance $17,580 Cash Receipts Cash Payments Date Cash Debit Check No. Cash Credit $ 4,230 $ 890 May 4 1416 9 520 1417 120 14 530 1418 630 1,090 17 1,950 1419 31 1,840 1420 1,420 1421 900 1422 670 Donald's Cash account shows a balance of $17,750 at May 31. On May 31, Donald Insurance received the following bank statement: Bank Statement for May Beginning Balance $14,400 Deposits and other Credits: S 450 May 1 EFT May 5 4,230 May 10 520 ay 15 530 May 18 1,950 22 May 1,700 9,380 Checks and other Debits May NSF 1,100 11 (check no. 1416) May 890 19 375 May EFT 22 (check no. 1417) May 120 29 (check no. 1418) May 630 May 31 (check no. 1419) 1,900 SC 35 (5,050) May 31 $ 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. The $1,700 bank collection was for a note receivable d. The correct amount of check 1419, for rent expense, is $1,900. Donald's controller mistakenly recorded the check for $1,090 Requirements 1. Prepare the bank reconciliation of Donald Insurance at May 31, 2018 2. Journalize any required entries from the bank reconciliation
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