After preparing the SWITZER Ltd. bank reconciliation in Exercise 4-4, make the company's journal entries for transactions that arise from the bank reconciliation. Include an explanation with each entry.

Exercise 4-4

The Cash account of SWITZER Ltd. reported a balance of \(\$ 2,500\) at August 31, 2020 Included were outstanding cheques totalling \(\$ 900\) and an August 31 deposit of \(\$ 500\) that did not appear on the bank statement. The bank statement, which came from HSBC Bank, listed an August 31, 2020, balance of \(\$ 3,405\). Included in the bank balance was an August 30 collection of \(\$ 550\) on account from a customer who pays the bank directly. The bank statement also shows a \(\$ 20\) service charge, \(\$ 10\) of interest revenue that SWITZER earned on its bank balance, and an NSF cheque for \(\$ 35\).