Question

Additional data for the bank reconciliation follow (Click the icon to view the additional information.) The December cash records of Devin Insurance follow: (Click the icon to view the checkbook.) Devin's Cash account shows a balance of $17,440 at December 31. On December 31, Devin Insurance received the following bank statement: (Click the icon to view the December bank statement.) Read the requirements. Requirement 1. Prepare the bank reconciliation of Devin Insurance at December 31, 2018. Prepare the bank portion of the reconciliation, followed by the book portion of the reconciliation. i Data Table Devin Insurance Bank Reconciliation December 31, 2018 Bank: Cash Receipts ADD: LESS: Date Cash Debit Dec. 4 $ 4,210 520 550 2,100 1,810 Cash Payments Check No. Cash Credit 1416 $ 840 1417 120 1418 710 1419 1,690 1420 1,450 1421 800 1422 640 Books: Print one

Answer 1

Devin Insurance Bank Reconciliation December 31,2018 4 Bank: 5 Balance, December 31, 2018 6 Add: Deposits in transit 7 8 Less: Outstanding checks 9 Check No. 1420 10 Check No. 1421 Check No. 1422 12 Adjusted bank balance, December 31, 2018 $ 18,455 $ 1,810 $ 20,265 $ 1,450 $ 800 $ 640 $ 2,890 $ 17,375 14 Books: 15 Balance, December 31, 2018 $ 17,440 16 Add: EFT collection of rent $ 200 17 Bank collection-Notes receivable $ 1,100 $ 1,300 $ 18,740 19 Less: NSF check $ 700 EFT Payment Insurance $ 375 21 Service charge $ 20 Correction of book error ($1,960-$1,690) $ 270 $ 1,365 23 Adjusted book balance, December 31, 2018 $ 17,375

B Devin Insurance Bank Reconciliation December 31,2018 4 Bank: 5 Balance, December 31, 2018 18455 6 Add: Deposits in transit 1810 7 =+C5+C6 8 Less: Outstanding checks Check No. 1420 1450 10 Check No. 1421 800 11 Check No. 1422 640 =+B9+B10+B11 12 Adjusted bank balance, December 31, 2018 =+C7-C11 13 14 Books: 15 Balance, December 31, 2018 17440 16 Add: EFT collection of rent 200 Bank collection-Notes receivable 1100 =+B16+B17 =+C15+C17 Less: NSF check 700 EFT Payment-Insurance Service charge Correction of book error ($1,960-$1,690) |–1960-1690 |=+B19+B20+B21+B22 23 Adjusted book balance, December 31, 2018 =+C18-C22 17 Ranko 375

Credit Date Dec.31 Debit $ 200 Accounts and Explanation Cash Rent revenue (To record the EFT collection) $ 200 Dec.31 $ 1,100 Cash Notes receivable (To record the collection of note) $ 1,100 Dec.31 $ 700 Accounts receivable Cash (To record the NSF check) $ 700 Dec.31 $ 375 Insurance expense Cash (To record the EFT payment for insurance) $ 375 Dec.31 $ 20 Miscellaneous expense Cash (To record the service charge) $ 20 Dec.31 $ 270 Rent expense Cash (Tro record the entry to correct the error) $ 270