Preparing a bank reconciliation and journal entries The May cash records of Dickson Insurance follow: Dicksons Cash
Question:
Preparing a bank reconciliation and journal entries The May cash records of Dickson Insurance follow:
Dickson’s Cash account shows a balance of $ 16,650 at May 31. On May 31, Dickson Insurance received the following bank statement:
Additional data for the bank reconciliation follows:
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 $ 1,960. Dickson’s controller mistakenly recorded the check for $ 1,690.
Requirements
1. Prepare the bank reconciliation of Dickson Insurance at May 31, 2015.
2. Journalize any required entries from the bankreconciliation.
Step by Step Answer:
Horngrens Financial and Managerial Accounting
ISBN: 978-0133255584
4th Edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura