Question 2: The October 31 bank statement of Spooky Halloween Costumes Ltd. (SHC) has just arrived from TD Bank. To prepare the SHC bank reconciliation, you gather the following data:

i.SHCs Cash account shows a balance of $2,256.14 on October 31.

ii.The October 31 bank balance is $4,023.05.

iii.The bank statement shows that SHC earned $38.19 of interest on its bank balance during October. This amount was added to SHCs bank balance.

iv.SHC pays utilities of $250 and insurance of $100 by EFT.

v.The bank statement includes a donation of $850, electronically deposited to the bank for SHC.

vi.The bank statement lists a $10.50 bank service charge. vii.Outstanding cheques as of October 31, 2018, amount to $1,497.04.

viii.On October 31, the SHC treasurer deposited $16.15, which will appear on the November bank statement.

ix.The bank statement includes a $300 deposit that SHC did not make. The bank added $300 to SHCs account for another companys deposit.

x.The bank statement includes two charges for returned cheques from donors. One is a $395 cheque received from a donor with the imprint Unauthorized Signature. The other is a nonsufficient funds cheque in the amount of $146.67 received from a client.

Requirements: 1. Prepare the bank reconciliation for SHC.

2. Journalize the October 31 transactions needed to update SHCs Cash account.