Preparing a bank reconciliation and journal entries [20-25 min]
The December cash records of Dunlap Insurance follow:
Cash Receipts | Cash Payments | ||
Date | Cash Debit | Check No. | Cash Credit |
Dec 4 | $ 4,170 | 1416 | $ 860 |
9 | 510 | 1417 | 130 |
14 | 530 | 1418 | 650 |
17 | 2,180 | 1419 | 1,490 |
31 | 1,850 | 1420 | 1,440 |
1421 | 900 | ||
1422 | 630 |
Dunlap’s Cash account shows a balance of $16,740 at December 31. On December 31, Dunlap Insurance received the following bank statement:
Additional data for the bank reconciliation follows:
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 $1,400 bank collection was for a note receivable.
d. The correct amount of check 1419 for rent expense is $1,940. Dunlap’s controller mistakenly recorded the check for $1,490.
Requirements
1. Prepare the bank reconciliation of Dunlap Insurance at December 31, 2012.
2. Journalize any required entries from the bank reconciliation.
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