active 5 P7-26A Preparing a bank recor $2,610 -26A Preparing a bank reconciliation and journal entries The August 31 bank statement of Watson Healthcare has just arrived from Unir Bank. To prepare the bank reconciliation, you gather the following data: a. The August 31 bank balance is $5,630. b. The bank statement includes two charges for NSF checks from customers. O for $390 (#1), and the other is for $140 (#2). c. The following Watson checks are outstanding at August 31: Check No. 237 288 291 294 295 296 Amount $ 90 160 550 620 10 100 d. Watson collects from a few customers by EFT. The August bank statement lists a $1,700 EFT deposit for a collection on account. e. The bank statement includes two special deposits that Watson hasn't recorded yet: $850 for dividend revenue, and $60 for the interest revenue Watson earned on its bank balance during August f. The bank statement lists a $70 subtraction for the bank service charge. g. On August 31, the Watson treasurer deposited $310, but this deposit does not appear on the bank statement. h. The bank statement includes a $700 deduction for a check drawn by Multi-State Freight Company. Watson notified the bank of this bank error. i. Watson's Cash account shows a balance of $3,100 on August 31. Requirements 1. Prepare the bank reconciliation for Watson's Healthcare at August 31, 2016. 2. Journalize any required entries from the bank reconciliation. Include an explanation for each entry