a. b. C. d. e. NSA's Cash account shows a balance of $6,565.48 on May 31. The May 31 bank balance is $8,257 25. The bank statement shows that NSA earned $16.38 of interest on its bank balance during May. This amount was added to NSA's bank balance. NSA pays utilities (5270) and insurance ($120) by EFT. The following NSA cheques did not clear the bank by May 31: Cheque No. Amount 237 $ 45.80 288 141.00 291 522.15 293 11.47 294 609.47 295 8.62 296 101.38 The bank statement includes a donation of $780, electronically deposited to the bank for NSA. The bank statement lists a $11.50 bank service charge. On May 31, the NSA treasurer deposited $16.15, which will appear on the June bank statement The bank statement includes a $315 deposit that NSA did not make. The bank added $315 to NSA's account for another company's deposit. The bank statement includes two charges for returned cheques from donors. One is a $375 cheque received from a donor with the imprint "Unauthorized Signature." The other is a nonsufficient funds cheque in the amount of $66.85 received from a client. f. g. h. i. j. Required 1. Prepare the bank reconciliation for NSA 2. Journalize the May 31 transactions needed to update NSA's Cash account. Include an explanation for each entry. CI Requirement 1. Prepare the bank reconciliation for NSA, and then continue with the book side of the reconciliation. (Enter amounts to two decimal places. Leave unused cells blank.) Neighborhood Services Association Bank Reconciliation May 31 BANK Add: Less: BOOKS Add: Less Adjusted bank balance, May 31 Balance, May 31 Correction of bank error for erroneous deposit Deposits in transit Interest revenue Outstanding cheques Service charge Adjusted book balance, May 31 Balance, May 31 Bank collection of donation Correction of book error EFT (total payments) EFT sales revenue Interest revenue on bank balance NSF cheque Service charge Unauthorized signature cheque Requirement 2. Journalize the May 31 transactions needed to update NSA's Cash account. Include an explanation for each entry. Begin by recording the interest earned on the bank balance. (Record debits first, then credits. Enter explanations on the last line of the journal. Enter amounts to two decimal places.) Journal Entry Date Accounts Debit Credit May 31 Next, record the electronic deposit by the bank. Journal Entry Date Accounts Debit Credit May 31 Next, record the EFT payment of utilities. Journal Entry Accounts Debit Credit Date May 31 Next, record the EFT payment of insurance. Journal Entry Accounts Debit Credit Date May 31 Record the bank service charge. Journal Entry Date Accounts Debit Credit May 31 The last entry is to record the nonsufficient funds and "Unauthorized Signature" cheques returned by the bank. Combine the entry for both returned cheques into one entry Journal Entry Date Accounts Debit Credit May 31 Accounts Receivable Bank Service Charge Expense Cash Donations Insurance Expense Interest Revenue Service Revenue Utilities Expense
