Preparing a bank reconciliation and journal entries [20-25 min]The May cash records of Dic...

Preparing a bank reconciliation and journal entries [20-25 min]

The May cash records of Dickson Insurance follow:

Dickson’s Cash account shows a balance of $16,650 at May 31. On May 31, Dickson received the following bank statement:

Additional data for the bank reconciliation follow:

a. The EFT deposit was a receipt of rent. The EFT debit was an insurance payment.

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b. The NSF check was received from a customer.

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c. The $1,700 bank collection was for a note receivable.

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d. The correct amount of check number 1419 for rent expense is $1,960. Dickson’s controller mistakenly recorded the check for $1,690.

Requirements

1. Prepare the bank reconciliation of Dickson Insurance at May 31, 2012.

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2. Journalize any required entries from the bank reconciliation.