Requirements: 1. Prepare the bank reconciliation for Winchesters Healthcare at August 31, 2012. 2. Journalize any required entries from the bank reconciliation. Include an explanation for each entry.

6 Preparing a bank reconciliation and journal entries [20 min] The August 31 bank statement of Winchester's Healthcare has just arrived from United Bank. To prepare the bank reconciliation, you gather the following data: P7-28A a. The August 31 bank balance is $4,870. b. The bank statement includes two charges for NSF checks from customers. One is for $400 (#1), and the other for $110 (#2). The following Winchester checks are outstanding at August 31: c. Check No. Amount $ 50 170 520 580 50 140 237 288 291 294 295 296 d. Winchester collects from a few customers by EFT. The August bank statement lists a $1,300 EFT deposit for a collection on account e. The bank statement includes two special deposits that Winchester hasn't recorded yet: $970, for dividend revenue, and $80, the interest f. The bank statement lists a $30 subtraction for the bank service g. On August 31, the Winchester treasurer deposited $350, but this deposit h. The bank statement includes a $1,000 deduction for a check drawn by revenue Winchester earned on its bank balance during August. charge. does not appear on the bank statement. Multi-State Freight Company. Winchester notified the bank of this bank error. i. Winchester's Cash account shows a balance of $2,900 on August 31