The May cash records of Donald Insurance follow:

Donald's Cash account shows a balance of $17,750 at May 31. On May 31, Donald 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 $1,700 bank collection was for a note receivable.
d. The correct amount of check 1419, for rent expense, is $1,900. Donald's controller mistakenly recorded the check for $1,090.
Requirements
1. Prepare the bank reconciliation of Donald Insurance at May 31, 2018.
2. Journalize any required entries from the bank reconciliation.

Transcribed Image Text:

Cash Receipts Cash Payments Check No. Cash Debit Cash Credit Date $ 4,230 May 4 $ 890 1416 9. 520 1417 120 14 530 1418 630 17 1,950 1419 1,090 31 1,840 1420 1,420 1421 900 1422 670 Bank Statement for May Beginning Balance $ 14,400 Deposits and other Credits: May EFT $ 450 May 5 4,230 May 10 520 May 15 530 May 18 1,950 May 22 BC 1,700 9,380 Checks and other Debits: May 8 NSF 1,100 May 11 (check no. 1416) 890 May 19 EFT 375 May 22 (check no. 1417) 120 May 29 (check no. 1418) 630 May 31 (check no. 1419) 1,900 May 31 SC 35 (5,050) Ending Balance $ 18,730