National Surf Board Co. (NSB) gathered the following information for its August 31 bank reconciliation:

• Cash balance per books, August 31 $3,872
• Cash balance per bank, August 31 $ (332) (account is overdrawn; a negative balance)

• August 31st cash receipts of $8,000 were locked in NSBs Treasurers office with a plan to deposit them at the bank the next day.

• Outstanding cheques issued by NSB at August 31st totalled $4,023

• A check originally issued by a customer for $257 was returned by NSBs bank.

• The bank statement showed the bank assessed interest charges of $15 on August 31 which have not been recorded by NSB.

• The bank statement showed special charges of $35 which had been properly recorded by NSB.

• NSBs Check #101 to pay for supplies was incorrectly processed by NSBs bank as $205; it was correctly entered as $250 in NSBs books.

1) Prepare the bank reconciliation for August 31.

2) Prepare any necessary journal entries that NSB has to make to update its accounting records.