The May 31 bank statement of Lewiston College has just arrived from Central Bank. To prepare the

Question:

The May 31 bank statement of Lewiston College has just arrived from Central Bank. To prepare the Lewiston bank reconciliation, you gather the following data:

a. The May 31 bank balance is $\$ 4,530.82$.

b. The bank statement includes two charges for returned checks from customers. One is an NSF check in the amount of $\$ 67.50$ received from Harley Doherty, a student, recorded on the books by a debit to Cash, and deposited on May 19. The other is a $\$ 195.03$ check received from Maria Shell and deposited on May 21. It was returned by Shell's bank with the imprint "Unauthorized Signature."

c. The following Lewiston checks are outstanding at May 31:

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d. A few students pay monthly fees by EFT. The May bank statement lists a $\$ 200$ deposit for student fees.

e. The bank statement includes two special deposits: $\$ 899.14$, which is the amount of dividend revenue the bank collected from General Electric Company on behalf of Lewiston, and $\$ 16.86$, the interest revenue Lewiston earned on its bank balance during May.

f. The bank statement lists a $\$ 6.25$ subtraction for the bank service charge.
g. On May 31 the Lewiston treasurer deposited $\$ 381.14$, but this deposit does not appear on the bank statement.
h. The bank statement includes a $\$ 410.00$ deduction for a check drawn by Marimont Freight Company. Lewiston promptly notified the bank of its error.
i. Lewiston's Cash account shows a balance of $\$ 3,521.55$ on May 31 .
\section*{Required}
1. Prepare the bank reconciliation for Lewiston College at May 31.
2. Record in general journal form the entries necessary to bring the book balance of Cash into agreement with the adjusted book balance on the reconciliation. Include an explanation for each entry.
3. How will what you learned in this problem help you manage a business?