(L. OBJ. 6) Preparing a bank reconciliation and journal entries [20—25 min] The April c...

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

The April cash records of Donald Insurance follow:

Donald Insurance’s Cash account shows a balance of $17,040 at April 30. On April 30, Donald Insurance received the following bank statement:

Additional data for the bank reconciliation:

a. The EFT credit was a receipt al rent. The EFT debit was an insurance payment.

b. The NSF check was received from a customer.

c. The $1,600 bank collection was for a note receivable.

d. The correct amount of check 1419 for rent expense is $1,920. Donald’s controller mistakenly recorded the check for $1,290.

Requirements

1. Prepare the bank reconciliation of Donald Insurance at April 30, 2011.

2. Journalize any required entries from the bank reconciliation.