The April cash records of Donald Insurance follow:
Cash Receipts Cash Payments
| date |
cash Debit |
Check No. |
Cash Credit |
| Apr 4 |
4,160 |
1416 |
$890 |
| 9 |
530 |
1417 |
140 |
| 14 |
520 |
1418 |
670 |
| 17 |
2,170 |
1419 |
1,290 |
| 30 |
1,860 |
1420 |
1,450 |
|
|
1421 |
800 |
|
|
1422 |
660 |
Donald Insurance's Cash account shows a balance of $17, 040 at April 30. On April 30, Donald Insurance received the following bank statement:
Bank Statement for April
| Beginning balance |
$13, 700 |
|
| Deposits and other credits |
|
|
| apr 1 EFT |
500 |
|
| 5 |
4,160 |
|
| 10 |
530 |
|
| 15 |
520 |
|
| 18 |
2,170 |
|
| 22 BC |
1, 600 |
9, 480 |
|
|
|
| checks and other debit |
|
|
| apr 8 NSF |
$900 |
|
| 11 (check no 1416) |
890 |
|
| 19 EFT |
200 |
|
| 22 (check no 1417) |
140 |
|
| 29 (check no 1418) |
670 |
|
| 30 (check no 1419) |
1, 920 |
|
| 30 SC |
30 |
4,750 |
| ending balance |
|
$18, 430 |
Explanation BC-bank collection, EFT electronic funds transfer:
NSF nonsufficient funds checks; SC service charge
Additional data for the bank reconciliation:
The EFT credit was a receipt of rent. The EFT debit was an insurance payment
The NSF check was received from a customer
The 1, 600 bank collection was for a note receivable
The correct amount of check 1419 for rent expense is $1, 920. Donald's controller mistakenly recorded the check for $1, 290
Requirements
1. Prepare the bank reconciliation of Donald Insurance at April 30, 2011.
2. Journalize any required entries from the bank reconciliation.