Concept explainers
Videos
Learning objective 6
- Adjusted Balances $18,025
The December cash records of Davidson Insurance follow:
Cash ReceiptsCash payments
Date Cash Debits Check No. Cash Credit
Dec. 4 $ 4,240 1416 $810
9 550 1417 180
14 600 1418 630
17 1,900 1419 1,390
31 1,860 1420 1,490
1421 700
1422 600
Davidson’s cash account shows a balances of $17,450 at December 31. On December 31, Davidson insurance received the following bank statement.
Bank statement for December
Beginning Balance $ 14,100
Deposits and other Credits:
Dec. 1 EFT $ 350
Dec. 5 4,240
Dec. 10 550
Dec. 15 600
Dec. 18 1,900
Dec. 22 BC 1,400 9,040
Checks and other Debits:
Dec. 8 NSF 400
Dec. 11 (checks no. 1416) 810
Dec. 19 EFT 225
Dec. 22 (checks no. 1417) 180
Dec. 29 (checks no. 1418) 630
Dec. 31 (checks no. 1419) 1,930
Dec. 31 SC 10 (4,185)
Ending Balance $ 18,955
Additional data for the bank reconciliation follow:
a. The EFT cred was a credit of rent The EFT debit was an insurance payment
b. The NSF check was received from a customer.
c. The 51.400 bank collection was for a note receivable.
d The correct amount of check no. 1419, for rent expense. S1.930 Davidsons controlermstakenIy recorded the check for 51,390.
Requirements
1 Prepare the bank reconciliation of Davidson insurance at December 31, 2018.
2. Journal any required entries from the bank reconciliation.
Trending nowThis is a popular solution!
Chapter 8 Solutions
EBK HORNGREN'S ACCOUNTING
- Net Income Calculation A company has the following financial information for the year: Revenue: $100,000 Cost of Goods Sold: $60,000 Operating Expenses: $20,000What is the company's net income?needarrow_forwardI need assistance with accounting questionarrow_forwardFinancial accounting questionarrow_forward
- Can you help me solve this general accounting problem using the correct accounting process?arrow_forwardNet Income Calculation A company has the following financial information for the year: Revenue: $100,000 Cost of Goods Sold: $60,000 Operating Expenses: $20,000What is the company's net income?arrow_forwardPlease provide the accurate answer to this general accounting problem using valid techniquesarrow_forward
- If a company has current assets of $80,000 and current liabilities of $50,000, what is its working capital? Needarrow_forwardIf a company has current assets of $80,000 and current liabilities of $50,000, what is its working capital?arrow_forwardCan you explain the correct methodology to solve this general accounting problem?arrow_forward
- On January 1, XYZ Corp. purchases inventory for $5,000 on credit. What is the journal entry for this transaction?arrow_forwardWhat is general accounting? give correct answer . need help in thisarrow_forwardI am trying to find the accurate solution to this general accounting problem with the correct explanationarrow_forward
Century 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:Cengage