Preparing a bank reconciliation and journal entries 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:
|
Bank Statement for December |
|||
|
Beginning balance |
$13,600 |
||
|
Deposits and other Credits: |
|
||
|
1 Dec |
EFT |
300 |
|
|
5 |
4,170 |
||
|
10 |
510 |
||
|
15 |
530 |
||
|
18 |
2,180 |
||
|
22 |
BC |
1,400 |
9,090 |
|
Checks and other Debits: |
|
|
|
|
8 Dec |
NSF |
$1,000 |
|
|
11 (check no. 1416) |
|
860 |
|
|
19 |
EFT |
700 |
|
|
22 (check no. 1417) |
|
130 |
|
|
29 (check no. 1418) |
|
650 |
|
|
31 (check no. 1419) |
|
1,940 |
|
|
31 |
SC |
60 |
(5,340) |
|
Ending balance |
|
$17,350 |
|
Additional data for the bank reconciliation follows:
- The EFT credit was a receipt of rent. The EFT debit was an insurance payment.
- The NSF check was received from a customer.
- The $1,400 bank collection was for a note receivable.
- 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.