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Requirements 1. Prepare the bank reconciliation of Davidson Insurance at December 31, 2018. 2. Journalize any required entries from the bank reconciliation. 1 entries

Requirements 1. Prepare the bank reconciliation of Davidson Insurance at December 31, 2018. 2. Journalize any required entries from the bank reconciliation. 1 entries

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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**Requirements** 1. Prepare the bank reconciliation of Davidson Insurance at December 31, 2018. 2. Journalize any required entries from the bank reconciliation. **P7-28A Preparing a bank reconciliation and journal entries** The August 31 bank statement of Well Healthcare has just arrived from United Bank. To prepare the bank reconciliation, you gather the following data: a. The August 31 bank balance is $4,540. b. The bank statement includes two charges for NSF checks from customers. One is for $380 (#1), and the other is for $180 (#2). c. The following Well Healthcare checks are outstanding at August 31: | Check No. | Amount | |-----------|--------| | 237 | $80 | | 288 | $190 | | 291 | $570 | | 294 | $600 | | 295 | $30 | | 296 | $70 | d. Well collects from a few customers by EFT. The August bank statement lists a $1,200 EFT deposit for a collection on account. e. The bank statement includes two special deposits that Well hasn't recorded yet: $800 for dividend revenue, and $120 for the interest revenue Well earned on its bank balance during August. f. The bank statement lists a $50 subtraction for the bank service charge. g. On August 31, the Well treasurer deposited $260, but this deposit does not appear on the bank statement. h. The bank statement includes a $1,050 deduction for a check drawn by Multi-State Freight Company. Well notified the bank of this bank error. i. Well’s Cash account shows a balance of $2,800 on August 31. **Requirements** 1. Prepare the bank reconciliation for Well Healthcare at August 31, 2018. 2. Journalize any required entries from the bank reconciliation. Include an explanation for each entry. **Problems Group B** **P7-29B Identifying internal control weakness in cash receipts** Pendley Productions makes all sales on account...
Transcribed Image Text:**Requirements** 1. Prepare the bank reconciliation of Davidson Insurance at December 31, 2018. 2. Journalize any required entries from the bank reconciliation. **P7-28A Preparing a bank reconciliation and journal entries** The August 31 bank statement of Well Healthcare has just arrived from United Bank. To prepare the bank reconciliation, you gather the following data: a. The August 31 bank balance is $4,540. b. The bank statement includes two charges for NSF checks from customers. One is for $380 (#1), and the other is for $180 (#2). c. The following Well Healthcare checks are outstanding at August 31: | Check No. | Amount | |-----------|--------| | 237 | $80 | | 288 | $190 | | 291 | $570 | | 294 | $600 | | 295 | $30 | | 296 | $70 | d. Well collects from a few customers by EFT. The August bank statement lists a $1,200 EFT deposit for a collection on account. e. The bank statement includes two special deposits that Well hasn't recorded yet: $800 for dividend revenue, and $120 for the interest revenue Well earned on its bank balance during August. f. The bank statement lists a $50 subtraction for the bank service charge. g. On August 31, the Well treasurer deposited $260, but this deposit does not appear on the bank statement. h. The bank statement includes a $1,050 deduction for a check drawn by Multi-State Freight Company. Well notified the bank of this bank error. i. Well’s Cash account shows a balance of $2,800 on August 31. **Requirements** 1. Prepare the bank reconciliation for Well Healthcare at August 31, 2018. 2. Journalize any required entries from the bank reconciliation. Include an explanation for each entry. **Problems Group B** **P7-29B Identifying internal control weakness in cash receipts** Pendley Productions makes all sales on account...
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