(L.OBJ. 6) Preparing a bank reconciliation and journal entries [20-25 min] The July cas...

(L.OBJ. 6) Preparing a bank reconciliation and journal entries [20-25 min]

The July cash records of Dickson Insurance follow:

Dickson insurance’s Cash account shows a balance of $16,520 at July 31. On July 31, Dickson Insurance received the following bank statement:

Additional data for the bank reconciliation:

a. The EFT deposit was 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 no receivable.

d. The correct amount of check 1419 for rent expense is $1,950. Dickson’s controller mistakenly recorded the check for $1,590.

Requirements

1. Prepare the bank reconciliation of Dickson Insurance at July 31, 2011.

2. Journalize any required entries from the bank reconciliation.