The December cash records of Davidson Insurance follow

Davidson’s Cash account shows a balance of $17,450 at December 31. On December 31, Davidson 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 $1,400 bank collection was for a note receivable.

d. The correct amount of check no. 1419, for rent expense, is $1,930. Davidson’s controller mistakenly recorded the check for $1,390.
Requirements

1. Prepare the bank reconciliation of Davidson Insurance at December 31, 2024.
2. Journalize any required entries from the bank reconciliation

Transcribed Image Text:

Cash Receipts Date Dec. 4 9 14 17 31 Cash Debit $ 4,240 550 600 1,900 1,860 Cash Payments Check No. 1416 1417 1418 1419 1420 1421 1422 Cash Credit $ 810 180 630 1,390 1,490 700 600