ACC 205 Week 4 P7-27A

P7-27A Preparing a bank reconciliation and journal entries [2025 min]

The December cash records of Dunlap Insurance follow:

Dunlap's Cash account shows a balance of $16,740 at December 31. On December 31, Dunlap Insurance received the following bank statement:

Additional data for the bank reconciliation follows:

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 1419 for rent expense is $1,940. Dunlap's controller mistakenly recorded the check for $1,490.

Requirements

1. Prepare the bank reconciliation of Dunlap Insurance at December 31, 2012.

2. Journalize any required entries from the bank reconciliation.