5. The BIG company received the following bank statement on August 31st 2014:

A comparison of checks written before and during August with the checks cleared through the bank showed outstanding checks at the end of August of $60,000. No deposits in transit were carried over from July, but a deposit was in transit at the end of August. The company was showing a beginning balance in the cash account on August 1st of $430,500. The company was showing a beginning balance in the cash account on August 1st of $430,500. Deposits were shown as $400,500 with checks written as $410,000.

a. Prepare a bank reconciliation.

b. Provide the journal entries that are required to be entered into the accounting system as a result of this bank reconciliation.

\begin{tabular}{llll} & Checks & Deposits & Balance \\ \cline { 2 - 3 } & & & \\ Balance, August 1, 2014 & & $521,000 \\ Deposits during August & & 2,500 & 871,000 \\ Interest Collected & & 873,500 \\ Checks Cleared during August & $440,500 & & 433,000 \\ NSF Check M.C. Bounced & 22,000 & & 411,000 \\ Bank Service Charge & 1,000 & 410,000 \\ Balance, August 31, 2014 & & & 410,000 \end{tabular} \begin{tabular}{llll} & Checks & Deposits & Balance \\ \cline { 2 - 3 } & & & \\ Balance, August 1, 2014 & & $521,000 \\ Deposits during August & & 2,500 & 871,000 \\ Interest Collected & & 873,500 \\ Checks Cleared during August & $440,500 & & 433,000 \\ NSF Check M.C. Bounced & 22,000 & & 411,000 \\ Bank Service Charge & 1,000 & 410,000 \\ Balance, August 31, 2014 & & & 410,000 \end{tabular}