Prepare the bank portion of the reconciliation, followed by the book portion of
ID: 2397641 • Letter: P
Question
Prepare the bank portion of the reconciliation, followed by the book portion of the reconciliation Devin Insurance Bank Reconciliation December 31, 2018 Bank Balance, December 31, 2018 ADD: EFT collection of rent 17520 200 17720 LESS: Outstanding checks 1420 1421 1422 1430 1100 660 3190 14530 Adjusted bank balance, December 31, 2018 Books Balance. December 31, 2018 ADD: Bank collection of note receivable 1200 Deposit in transit 1850 3050 LESS: F payment of insurance NSF check Correction of book error Service charge Adjusted book balance, December 31, 2018Explanation / Answer
Answer 1. Devin Insurance Bank Reconciliation Dec 31, 2018 Bank: Balance: Dec 31, 2018 18,995.00 Add: Deposit in Transit 1,850.00 20,845.00 Less: Outstanding Checks: Check # 1420 1,430.00 Check # 1421 1,100.00 Check # 1422 660.00 3,190.00 Adjusted Bank Balance, Dec 31, 2012 17,655.00 Books: Balance: Dec 31, 2018 17,520.00 Add: EFT collection of Rent 200.00 Bank Collection of Note Receivable 1,200.00 1,400.00 18,920.00 Less: NSF Check 600.00 EFT Payment of Insurance 375.00 Bank Service Charge 20.00 Correction of Book Error ($960 - $690) 270.00 1,265.00 Adjusted Book Balance, Dec 31, 2012 17,655.00 Answer 2. Journal Entry Date Particulars Dr. Amt. Cr. Amt. 1 Cash 200.00 Rent Revenue 200.00 (To record the EFT Received) 2 Accounts Receivable 600.00 Cash 600.00 (To record the NSF Check) 3 Cash 1,200.00 Notes Receivable 1,200.00 (To record the notes collected by Bank) 4 Rent Expenses 270.00 Cash 270.00 (To record the corrected amount of Rent expense) 5 Bank Charges 20.00 Cash 20.00 (To record the bank charges)