P7-4B The August 31 bank statement of Beeson Nursery has just arrived from United Bank. To prepare the Beeson bank reconciliation, you gather the following data:

a. Beeson's Cash account shows a balance of $3,998.14 on August 31.

b. The bank statement includes two charges for returned checks from customers. One is a $395.00 check received from Lakeland Express and deposited on August 20. returned by Lakeland's bank with the imprint "Unauthorized Signature." The other is an NSF check for $146.67 received from Veracruz, Inc. This check was deposited on August 17.

c. Beeson pays rent expense ($7501 and insurance expense (5290) each month by EFT.

Bank Statement for April 20X4 Beginning balance... Deposits and other Credits: Apr. 1... 4. S 326 EFT 4.174 407 9 12 17 22. 23. Checks and other Debits: Apr. 7 13. 14. 15. 18. 21. 26. 30. 30. Ending balance. $ 5.911 559 2.187 1.368 BC 1,854 10.875 $ 891 1,390 903 US 147 664 219 EFT 1.472 1,000 20 SC (6,706) $10.080 Explanations: EFT-electronic funds transfer, BC-bank collection. US-unauthorized signature. SC-service charge.

d. The Beeson checks below are outstanding at August 31.1 237 288 291 Check No. Amount $ 46.10 141.00 578.05 293 11.87 294 609.51 295 296 8.88 101.63

e. The bank statement includes a deposit of $1.191.17. collected by the bank on behalf of Beeson Nursery. Of the total, $1.01 1.81 is collection of a note receivable, and the remain- der is interest revenue.

f. The bank statement shows that Beeson earned $38.19 of interest on its bank balance dur- ing August. This amount was added to Beeson's account by the bank. g. The bank statement lists a $10.50 subtraction for the bank service charge. h. On August 31, the Beeson treasurer deposited $316.15, but this deposit does not appear on the bank statement. i. The bank statement includes a $300.00 deposit that Beeson did not make. The bank erro- neously credited the Beeson account for another bank customer's deposit, j. The August 31 bank balance is $5.116.22. Required 1. Prepare the bank reconciliation for Beeson Nursery at August 31. 2. Record the journal 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.