Question

Additional data for the bank reconciliation follow: (Click the icon to view the additional information.) The December cash records of Buffy Insurance follow: .: (Click the icon to view the checkbook.) Buffy's Cash account shows a balance of $17,040 at December 31. On December 31, Buffy Insurance received the following bank statement: E: (Click the icon to view the December bank statement.) Read the requirements. Requirement 1. Prepare the bank reconciliation of Buffy Insurance at December 31, 2018 Data Table Prepare the bank portion of the reconciliation, followed by the book portion of the reconciliation. i Data Table Buffy Insurance Bank Reconciliation December 31, 2018 13,500 Bank: ADD: Cash Receipts Date Cash Debit Dec. 4 $ 4,140 460 560 890 190 LESS: Cash Payments Check No. Cash Credit 1416 $ 1417 1418 660 1419 790 1420 1,470 1421 800 1422 610 1,950 1,840 BC_1,100 8,360 Bank Statement for December Beginning Balance $ Deposits and other Credits: Dec. 1 EFT $ 150 Dec. 5 4,140 Dec. 10 460 Dec. 15 560 Dec. 18 1,950 Dec. 22 Checks and other Debits: Dec. 8 NSF 800 Dec 11 (check no. 1416) 890 Dec. 19 EFT 840 Dec. 22 (check no. 1417) Dec. 29 (check no. 1418) Dec. 31 (check no. 1419) 970 Dec. 31 Ending Balance $ Books: i More Info ADD: 190 660 LESS: 20 SC 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 $1,100 bank collection was for a note receivable. d. The correct amount of check no. 1419, for rent expense, is $970. Buffy's controller mistakenly recorded the check for $790. (4,370) 17,490 Explanations: BC-bank collection; EFT-electronic funds transfer; NSF-nonsufficient funds checks; SC-service charge i Requirements Choose from any list or enter any number in the input fields and then contin Print Done 1. Prepare the bank reconciliation of Buffy Insurance at December 31, 2018. 2. Journalize any required entries from the bank reconciliation.

Answer 1

A. B C Buffy Insurance 1 Bank Reconciliation 2 December 31,2018 4 Bank: $17,490 5 Balance, December 31, 2018 6 Add: Deposits in transit $ 1,840 $ 19,330 7 8 Less: Outstanding checks Check No. 1420 1,470 Check No. 1421 10 800 610 $ 2,880 $ 16,450 $ 12 Adjusted bank balance, December 31, 2018 Check No. 1422 11 13 14 Books: $17,040 15 Balance, December 31, 2018 16 Add: EFT collection of rent 150 1,100 $1,250 $ Bank collection-Notes receivable 17 $18,290 18 19 Less: NSF check 800 EFT Payment-Insurance Service charge Correction of book error ($970-$790) 20 840 $ 180 $ 1,840 20 21 22 $16,450 23 Adjusted book balance, December 31, 2018 co

В C Buffy Insurance 1 Bank Reconciliation 2 December 31,2018 4 Bank: 17490 5 Balance, December 31, 2018 6 Add: Deposits in transit 1840 +C5+C6 7 8 Less: Outstanding checks Check No. 1420 1470 Check No. 1421 800 10 Check No. 1422 11 610 +B9+B10+ B1 1 +C7-C11 12 Adjusted bank balance, December 31, 2018 13 14 Books: 15 Balance, December 31, 2018 17040 16 Add: EFT collection of rent 150 Bank collection-Notes receivable 1100 17 +B16+B17 +C15+C17 18. 19 Less: NSF check 800 EFT Payment-Insurance Service charge Correction of book error ($970-$790) 840 20 20 21 970-790 B19+B20+B21+B22 22 E+C18-C22 23 Adjusted book balance, December 31, 2018

Accounts and Explanation Date Debit Credit Cash Dec.31 $ 150 $ 150 Rent revenue (To record the EFT collection) Cash $1,100 Dec.31 $ 1,100 Notes receivable (To record the collection of note) |Accounts receivable Dec.31 S 800 $800 Cash (To record the NSF check) $ 840 Insurance expense Dec.31 Cash S 840 (To record the EFT payment for insurance) Miscellaneous expense Dec.31 $ 20 $ Cash 20 (To record the service charge) $ 180 Rent expense Dec.31 180 Cash (Tro record the entry to correct the error)