The May 31 bank statement of Neighborhood Services Association (NSA) has just arrived from Scotiabank. To prepare the NSA bank reconciliation, you gather the following data.

1. Prepare the bank reconciliation for NSA.

2. Journalize the May 31 transactions needed to update NSA's Cash account. Include an explanation for each entry.

a.

NSA's

Cash account shows a balance of

$6,565.48

on

May

31.

b.

The

May

31

bank balance is

$8,257.25.

c.

The bank statement shows that

NSA

earned

$16.38

of interest on its bank balance during

May.

This amount was added to

NSA's

bank balance.

d.

NSA

pays utilities

($270)

and insurance

($120)

by EFT.

e.

The following

NSA

cheques did not clear the bank by

May

31:

Cheque No.		Amount
237		$45.80
288		141.00
291		522.15
293		11.47
294		609.47
295		8.62
296		101.38

f.

The bank statement includes a donation of

$780,

electronically deposited to the bank for

NSA.

g.

The bank statement lists a

$11.50

bank service charge.

h.

On

May

31,

the

NSA

treasurer deposited

$16.15,

which will appear on the

June

bank statement.

i.

The bank statement includes a

$315

deposit that

NSA

did not make. The bank added

$315

to

NSA's

account for another company's deposit.

j.

The bank statement includes two charges for returned cheques from donors. One is a

$375

cheque received from a donor with the imprint "Unauthorized Signature." The other is a nonsufficient funds cheque in the amount of

$66.85

received from a client.