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:

1. SHC’s Cash account shows a balance of $2,256.14 on October 31.

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

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

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

5. The following SHC cheques did not clear the bank by October 31:

Cheque #	Amount
237	$46.10
288	141.00
291	578.05
293	11.87
294	609.51
295	8.88
296	101.63

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

7. The bank statement lists a $10.50 bank service charge.

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

9. The bank statement includes a $300 deposit that SHC did not make. The bank added $300 to SHC’s account for another company’s deposit.

10. 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 SHC’s Cash account. You do not need to include an explanation for each entry.