Requirement 1. Prepare the bank reconciliation of Donald Insurance at December 31, 2018 Prepare the bank portion of the reconciliation, followed by the book portion of the reconciliation Donald Insurance Bank Reconciliation December 31, 2018 Bank: Balance, December 31, 2018 ADD: Deposit in transit $ 19,705 1,800 21,505 LESS: Outstanding checks 1420 1421 $ 1,480 900 610 1422 2,990 $ 18,515 Adjusted bank balance, December 31, 2018 Books: Balance, December 31, 2018 ADD: EFT collection of rent Bank collection of note receivable $ 100 1,300 1.400 200 700 LESS: NSF check EFT payment of insurance Service charge Correction of book error Adjusted book balance, December 31, 2018 14,400 790 Cash Receipts Date Cash Debit Dec. 4 $ 4,260 480 540 2,000 1,800 Cash Payments Check No. Cash Credit 1416 5 1417 150 1418 640 1419 680 1420 1,480 1421 900 1422 610 BC_ 1,300 8,680 Bank Statement for December Beginning Balance $ Deposits and other Credits: Dec. 1 EFT S 100 Dec. 5 4,260 Dec. 10 480 Dec. 15 540 Dec 18 2,000 Dec. 22 Checks and other Debits: Dec. 8 NSF 200 Dec. 11 (check no. 1416) Dec 19 EFT 700 Dec. 22 (check no. 1417) 150 Dec 29 (check no. 1418) Dec 31 (check no. 1419) Dec. 31 35 $ Ending Balance Print Done A More Info - X (3,375) 19,705 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 $1,300 bank collection was for a note receivable. d. The correct amount of check no. 1419, for rent expense, is $860. Donald's controller mistakenly recorded the check for $680. Explanations: BC-bank collection, EFT-electronic funds transfer, NSF-nonsufficient funds checks; SC-service charge