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ACC205 Principles of Accounting IRequired TextHorngren, C., Harrison W. &Oliver, M. (2012). Accounting (9th ed.). Upper Saddle River, NJ:Pearson Prentice Hall. ISBN: 9780132569057Week 4Required Readings1. Chapter 7: Internal Control and Cash2. Chapter 8: ReceivablesAssignmentsa. Chapter 7, P7-27Ab. Chapter 7, P7-31Ac. Chapter 8, P8-26Ad. Chapter 8, P8-27Ae. Chapter 8, P8-32AP7-27APreparing a bank reconciliation and journal entries [20–25min]The December cash records of Dunlap Insurance follow:Dunlap's Cash account shows a balance of $16,740 at December 31. On December31, 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 insurancepayment.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'scontroller 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.
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(continued)P 7-27AReq. 2Journal EntryDATEACCOUNTS AND EXPLANATIONSPOST.REF.DEBITCREDITDec31 Cash300Rent revenue30031 Cash1,400Note receivable1,40031Accounts receivable1,000Cash1,00031Insurance expense700Cash70031Miscellaneous expense( or Bank service charge expense)60Cash6031Rent expense450