Question

Q2 Ch8

P8-27A (similar to) E Question Help i Data Table Auditional data for the bank reconciliation i (Click the icon to view the additional i The December cash records of Donald Insurance follow: (Click the icon to view the checkback.) Donald's Cash account shows a balance of $16,640) at December 31. On December 31, Donald Insurance necalved the following bank statement: Click the icon to view the December bank statement.) Read the requirements Cash Receipts Date Cash Debit Dec 4 3 4,230 9 9 430 14 570) Cash Payments Check No. Cash Credit 1418 $ 780 1417 210 - 1414 700 A Data Table Requirement 1. Prepare the bank reconciliation of Donald Insurance at December 21, 2018. Prepare the bank parlian af the reconciliation, followed by the book portion of the reconciliation. 17 1419 1.490 1,870 1420 1,440 Donald Insurance Bank Reconciliation December 31, 2018 14,000 1421 1.800 1422 E30 Bank: Print Done ADD: Bank Statement for December Beginning Balance S s Deposts and other Credits: Dec. 1 EFT $ 100 Dec. 5 4,230 Dec. 10 400 15 570 Dec. 18 2,350 Dec. 22 BC 1.700 Checks and other Debits: Den. B NSE 600 LESS: i Requirements 9,430 1. Prepare the bank reconciliation of Donald Insurance at December 31, 2018. 2. Journaize any required entries from the bank reconciliation 790 11 (check no. 1416) 19 Dec. EFT 810 Print Done Dec. 210 Der. 22 (check no. 1417) 29 (check no. 1418) 31 (check no. 14191 700 A More Into Dec 1,940 25 Dec 31 SC (5.105) S Ending Balance 18,325 a. The EFT credit was a receipt of rent. The EFT dabit was an insurance payment. b. The NSF check was receved from a customer C. The $1,700 bank collection was for a note receivable d. The correct around of check no. 1419, for renil experise, is $1.940. Donald's controller mistakenly recorded the check for $1,490. Choose from any list or enter any number in the input fields and then click Check Answer. Explanations: BC-bank collection EFT-electronic funds transfer; NSF-nonsufficient funda checks; SC-Bervice charge ? 7 parts remaining Prin: Done Print Denie

Answer 1

Donald Insurance Bank Reconciliation December 31,2018 Bank: Balance, December 31 2018 Add: Deposit in transit $18,325 1,870 $20,195 $1,440 1,600 630 $3,670 Less: Outstanding Checks 1420 1421 1422 Adjusted Bank Balance, December 31 2018 Books: Balance, December 31 2018 Add: EFT Collection of Rent Bank Collection of Note Receivable $16,525 $16,640 $100 1,700 $1,800 $18,440 Less:Error in recording check($1,940 - $1,490) NSF 450 600 840 25 1,915 EFT Insurance Payment Service Charges Adjusted Book Balance, December 31 2018 $16,525

Credit Answer(2) Journal Entries Date Accounts title and Explanation December 31 Cash Rent Revenue (To record Rent received) Debit $100 $100 Credit Debit $1,700 Date Accounts title and Explanation December 31 Cash Notes Receivable (To record Bank Collection of Note Receivable) $1,700 Credit Debit $450 Date Accounts title and Explanation December 31 Rent Expense Cash (To rectify error in recording Rent Expense) $450 Credit Debit $600 Date Accounts title and Explanation December 31 Accounts Receivable Cash (To record NSF cheque) $600 Credit Debit $840 Date Accounts title and Explanation December 31 Insurance Expense Cash (To record insurance payment) $840 Credit Debit $25 Date Accounts title and Explanation December 31 Bank Service charges Cash (To record bank service charges ) $25