The May cash records of Donald Insurance follow: Date Cash Receipts May 4 9 14 17 31 Cash Debit $ 4,230 520 530 1,950 1,840 Check No. 1416 1417 1418 1419 1420 1421 Cash Payments 1422 Cash Credit $890 120 630 1,090 Donald's Cash account shows a balance of $17,750 at May 31. On May 31, Donald Insurance received the following bank statement: 1,420 900 670

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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10:33 W
n
Learning Objective 6
1. Adjusted Balance $17,580
The May cash records of Donald Insurance follow:
Date
Cash Receipts
May 4
9
14
17
31
Cash Debit
$ 4,230
со
520
530
1,950
1,840
Check No.
1416
1417
1418
1419
1420
1421
1422
Cash Payments
424/ 1480
QAA
▶ICO
Cash Credit
Donald's Cash account shows a balance of $17,750 at May 31. On May 31,
Donald Insurance received the following bank statement:
5G`ll 72%
$890
120
630
1,090
1,420
900
670
||| 0 <
:
Transcribed Image Text:10:33 W n Learning Objective 6 1. Adjusted Balance $17,580 The May cash records of Donald Insurance follow: Date Cash Receipts May 4 9 14 17 31 Cash Debit $ 4,230 со 520 530 1,950 1,840 Check No. 1416 1417 1418 1419 1420 1421 1422 Cash Payments 424/ 1480 QAA ▶ICO Cash Credit Donald's Cash account shows a balance of $17,750 at May 31. On May 31, Donald Insurance received the following bank statement: 5G`ll 72% $890 120 630 1,090 1,420 900 670 ||| 0 < :
10:34 W 27
|||
□
May 19
May 22 (check no. 1417)
May
29 (check no. 1418)
May
31 (check no. 1419)
May 31
Ending Balance
EFT
SC
7.2-45 Full Alternative Text
Additional data for the bank reconciliation follow:
со
375
120
630
1,900
35
Explanations: BC-bank collection; EFT-electronic funds transfer;
NSF-nonsufficient funds checks; SC-service charge
QAA
(5,050)
$ 18,730
425 / 1480
a. The EFT credit was a receipt of rent. The EFT debit was an insurance
payment.
b. The NSF check was received from a customer.
c. The $1,700 bank collection was for a note receivable.
d. The correct amount of check 1419, for rent expense, is $1,900. Donald's
controller mistakenly recorded the check for $1,090.
Requirements
1. Prepare the bank reconciliation of Donald Insurance at May 31, 2018.
2. Journalize any required entries from the bank reconciliation.
5G all 72%
▶ICO ||| 0 <
:
Transcribed Image Text:10:34 W 27 ||| □ May 19 May 22 (check no. 1417) May 29 (check no. 1418) May 31 (check no. 1419) May 31 Ending Balance EFT SC 7.2-45 Full Alternative Text Additional data for the bank reconciliation follow: со 375 120 630 1,900 35 Explanations: BC-bank collection; EFT-electronic funds transfer; NSF-nonsufficient funds checks; SC-service charge QAA (5,050) $ 18,730 425 / 1480 a. The EFT credit was a receipt of rent. The EFT debit was an insurance payment. b. The NSF check was received from a customer. c. The $1,700 bank collection was for a note receivable. d. The correct amount of check 1419, for rent expense, is $1,900. Donald's controller mistakenly recorded the check for $1,090. Requirements 1. Prepare the bank reconciliation of Donald Insurance at May 31, 2018. 2. Journalize any required entries from the bank reconciliation. 5G all 72% ▶ICO ||| 0 < :
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