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, 2018.
2. Journalize any required entries from the bank reconciliation.

Transcribed Image Text:

Cash Receipts Cash Payments Cash Debit Check No. Cash Credit Date $ 4,240 $ 810 Dec. 4 1416 550 1417 180 14 600 1418 630 17 1,900 1419 1,390 31 1,860 1420 1,490 1421 700 1422 600 Bank Statement for December Beginning Balance $ 14,100 Deposits and other Credits: Dec. EFT $ 350 Dec. 4,240 Dec. 10 550 Dec. 15 600 Dec. 18 1,900 Dec. 22 BC 1,400 9,040 Checks and other Debits: Dec. NSF 400 Dec. 11 (check no. 1416) 810 Dec. 19 EFT 225 Dec. 22 (check no. 1417) 180 Dec. 29 (check no. 1418) 630 Dec. 31 (check no. 1419) 1,930 Dec. 31 SC 10 (4,185) Ending Balance $ 18,955