The April cash record of Donald Insurance follow:
cash receipts cash payments
| date |
cash debit |
check no |
cash crdit |
|
| april 4 |
4,160 |
1416 |
890 |
|
| april 9 |
530 |
1417 |
140 |
|
| april 14 |
520 |
1418 |
670 |
|
| april 17 |
2170 |
1419 |
1290 |
|
| april 30 |
1860 |
1420 |
1450 |
|
|
|
1421 |
800 |
|
|
|
1422 |
660 |
|
Donal Insurance's Cash account shows a balance of $17, 040 at April 30. On April 30, Donald Insurance received the following bank statement:
| beginning balance |
|
13,700 |
| deposits and other credits |
|
|
| apr 1 EFT |
500 |
|
| apr 5 |
4160 |
|
| apr 10 |
530 |
|
| apr 15 |
520 |
|
| apr 18 |
2170 |
|
| apr 22 BC |
1600 |
9480 |
|
|
|
| checks and other debits |
|
|
| apr 8 NSF |
900 |
|
| apr 11 (check no. 1416) |
890 |
|
| apr 19 EFT |
200 |
|
| apr 22 (check no. 1417) |
140 |
|
| apr 29 (check no 1418) |
670 |
|
| apr 30 (check no. 1419) |
1920 |
|
| 30 SC |
30 |
4750 |
| Ending balance |
|
18430 |
| Explanations BC bank collection EFT electronic funds transfer: NSF nonsufficient funds checks, SC service charge |
|
|
Additional data for the bank reconciliation:
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 $1,600 bank collection was for a not receivable.
d. The correct amount of check 1419 for rent expense is $1, 920. Donald's conrroller mistakenly recorded the check for $ 1, 290. requirements
R1. Prepare the bank reconciliation of Donald Insurance at April 30, 2011.
R2. Journalize any required entries from the bank reconciliation.