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. (5 Marks)

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