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Learning Objective 6 P8-33B Preparing a bank reconciliation and journal entries The May cash records of Donald Insurance follow: 1. Adjusted Balance $17,580 Cash Payments Check No. Cash Credit 1416 $ 890 Cash Receipts Date Cash Debit May 4 $ 4,230 520 530 1,950 1,840 1417 120 1418 1419 1420 1421 1422 630 1,090 1,420 900 670 Donald's Cash account shows a balance of $17,750 at May 31. On May 31, Donald Insurance received the following bank statement: $ 14,400 Bank Statement for May Beginning Balance Deposits and other Credits: May 1 EFT $450 May 5 4,230 May 10 520 May 15 530 May 18 1,950 May 22 BC 1,700 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 Ending Balance 9,380 (5,050) $ 18,730 Explanations: BC-bank collection; EFT-electronic funds transfer, NSF-nonsufficient funds checks; SC-service charge 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

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