The September 30 bank statement of Neighborhood Services Association (NSA) has just arrived from Scotiabank. To prepare the NSA bank reconciliation, you gather the following data: (Click the icon to view the additional data for the bank reconciliation.) Required 1. Prepare the bank reconciliation for NSA. 2. Journalize the September 30 transactions needed to update NSA's Cash account. Include an explanation for each entry. Requirement 1. Prepare the bank reconciliation for NSA, and then continue with the book side of the reconciliation. (Enter amounts to two decimal places. Leave unused cells blank.) Neighborhood Services Association Bank Reconciliation September 30 BANK: Add: Less: BOOKS: The September 30 bank statement of Neighborhood Services Association (NSA) has just arrived from Scotiabank. To prepare the NSA bank reconciliation, you gather the following data: (Click the icon to view the additional data for the bank reconciliation.) Required 1. Prepare the bank reconciliation for NSA. 2. Journalize the September 30 transactions needed to update NSA's Cash account. Include an explanation for each entry. Requirement 1. Prepare the bank reconciliation for NSA, and then continue with the book side of the reconciliation. (Enter amounts to two decimal places. Leave unused cells blank.) Neighborhood Services Association Bank Reconciliation September 30 BANK: Balance, September 30 $6,540.94 Add: Balance, September 30 $8,501.15 Interest revenue $32.35 (1992.56) Less: Service charge $290 Correction of bank error for erroneous deposit BOOKS: BOOKS: Add: Less: Requirement 2. Journalize the September 30 transactions needed to update NSA's Cash account. Include an explanation for each entry. Begin by recording the interest earned on the bank balance. (Record debits first, then credits. Enter explanations on the last line of the journal. Enter amounts to two decimal places.) Journal Entry Date Accounts Debit Credit Sept. 30 Donations $850 Next, record the electronic deposit by the bank. Journal Entry Date Accounts Debit Credit Sept. 30 Donations Accounts Receivable Next, record the EFT payment of utilities. Journal Entry Date Accounts Debit Credit Sept. 30 Accounts Receivable Next, record the EFT payment of insurance. Journal Entry Date Accounts Debit Credit Sept. 30 Next, record the EFT payment of utilities. Journal Entry Date Accounts Debit Credit Sept. 30 Accounts Receivable Next, record the EFT payment of insurance. Journal Entry Date Accounts Debit Credit Sept. 30 Record the bank service charge. Journal Entry Date Accounts Debit Credit Sept. 30 The last entry is to record the nonsufficient funds and "Unauthorized Signature" cheques returned by the bank. Combine the entry for both returned cheques into one entry. Journal Entry Date Accounts Debit Credit Sept. 30 a. NSA's Cash account shows a balance of $6,540.94 on September 30. b. The September 30 bank balance is $8,501.15. C. The bank statement shows that NSA earned $32.35 of interest on its bank balance during September. This amount was added to NSA's bank balance. d. NSA pays utilities ($210) and insurance ($80) by EFT. e. The following NSA cheques did not clear the bank by September 30: Cheque No. Amount 237 46.05 288 141.00 291 522.15 293 11.07 294 609.51 295 8.88 296 102.30 f. The bank statement includes a donation of $850, electronically deposited to the bank for NSA. g. The bank statement lists a $10.60 bank service charge. h. On September 30, the NSA treasurer deposited $15.35, which will appear on the October bank statement. i. The bank statement includes a $415 deposit that NSA did not make. The bank added $415 to NSA's account for another company's deposit. j. 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 $67.15 received from a client
