The December cash records of Donald Insurance follow: EEB (Click the icon to vie

Question

The December cash records of Donald Insurance follow: EEB (Click the icon to view the checkbook.) Donald's Cash account shows a balance of $17,730 at December 31. On December 31, Donald Insurance received the following bank statement EEB (Click the icon to view the December bank statement.) Additional data for the bank reconciliation follow (Click the icon to view the additional information.) Read the requirements December 31, the tolowing bank stat Requirement 1. Prepare the bank reconciliation of Donald Insurance at December 31, 2016 Prepare the bank portion of the reconciliation, followed by the book portion of the reconciliation.

Explanation / Answer

Bank Reconciliation Statement: Balance as per aBank Statement 18010 Add: Deposits in transit 1800 19810 Less: Outstanding checks 2940 (1430+900+610) Adjusted balance as per Bank Statement 16870 Balance as per Books 17730 Add: EFT for rent 100 Collection of notes receivable 1400 19230 Less: NSF check 700 Less: EFT for insurance 1000 Less: Service charges made 30 Less: Error in recording check of rent 630 Adjusted balance as per books 16870 Journal entries: Cash account Dr. 100      Rent revenue 100 Cash Account Dr. 1400      Notes receivable 1400 Accounts receivable Dr. 700       Cash account 700 Insurance expense Account Dr. 1000       Cash account 1000 Misc expense Account Dr. 30       Cash account 30 Rent expense Account Dr. 630       Cash account 630

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