The December cash records of Duffy Insurance follow:
Duffy’s Cash account shows a balance of $17,050 at December 31. On December 31, Duffy Insurance received the following bank statement:
Additional data for the bank reconciliation follow:
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 $1,600 bank collection was for a note receivable.
d. The correct amount of check 1419, for rent expense, is $1,910. Duffys controller mistakenly recorded the check for $1,190.
1. Prepare the bank reconciliation of Duffy Insurance at December 31, 2016.
2. Journalize any required entries from the bank reconciliation.
|Balance, December 31, 2016||$ 18,480||Balance, December 31, 2016||$ 17,050|
|Deposit in transit||1,830||EFT collection of rent||$ 400|
|20,310||Bank collection of note||1,600||2,000|
|Outstanding checks||Correction of book error||720|
|No. 1420||$ 1,470||NSF check||600|
|No. 1421||1,200||EFT – insurance payment||700|
|No. 1422||630||3,300||Service charge||20||2,040|
|Adjusted bank balance, December 31, 2016||$ 17,010||Adjusted book balance, December 31, 2016||$ 17,010|
|Date||Accounts and Explanation||Debit||Credit|
|To record EFT rent collection.|
|To record bank collection of notes receivable.|
|To record error on check 1419.|
|To record NSF check.|
|To record EFT insurance payment.|
|To record bank service charges incurred.|
Click following link to download this document
ACCOUNTING 416 The December cash records of Duffy Insurance follow.docx