Preparing a bank reconciliation and journal entries The May cash records of Dickson Insurance follow: Dicksons Cash

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.

Transcribed Image Text:

Cash Receipts Cash Payments Cash Debit Check No. 1416 1417 1418 1419 1420 1421 1422 Date Cash Credit May 4 4,150 540 560 2,190 1,870 850 160 670 1,690 1,450 1,200 640 9 17 31 Bank Statement for May Beginning Balance Deposits and other Credits: s 14,000 EFT 200 4,150 May 1 May 5 May 10 May 15 May 18 May 2 2,190 BC 1,700 Checks and other Debits: May 8 May, 11 (check no. 1416) May 19 May 22 (check no. 1417) May 29 (check no. 1418) May 31 (check no. 1419) May 31 NSF EFT 160 1,960 (4,750) 5 18,590 10 Ending Balance