Question

Learning Objective 6 P8-33B Preparing a bank reconciliation and journal entries The May cash records of Donald Insurance follow: 1. Adjusted Balance $17,580 Cash Payments Check No. Cash Credit 1416 $ 890 Cash Receipts Date Cash Debit May 4 $ 4,230 520 530 1,950 1,840 1417 120 1418 1419 1420 1421 1422 630 1,090 1,420 900 670

excel format

Answer 1

1.

Bank reconciliation statement
Particulars	Amount ($)	Particulars	Amount ($)
Balance as per bank statement	18,730	Balance as per books	17,750
Add: Deposits in transit	1,840	Add: EFT collection of rent	450
	20,570	Bank collection of note	1,700
Less: Outstanding checks			19,900
Check no. 1420	-1,420	Less: Correction of bank error (1,900 - 1,090)	-810
Check no. 1421	-900	NSF check	-1,100
Check no. 1422	-670	EFT-Insurance payment	-375
		Service charges	-35
Adjusted bank balance	17,580	Adjusted book balance	17,580

2.

S.No.	Accounts titles and Explanation	Debit ($)	Credit ($)
1	Cash	450
	Rent revenue		450
	(To record rent received)
2	Cash	1,700
	Notes receivable		1,700
	(To record cash received)
3	Rent expense	810
	Cash		810
	(To record rent paid)
4	Accounts receivable	1,100
	Cash		1,100
	(To record cash received)
5	Insurance	375
	Cash		375
	(To record insurance paid)
6	Bank expense	35
	Cash		35
	(To record bank expense paid)