The May 31 bank statement of Family Services Association (FSA) has just arrived from Scotia bank. To prepare the FSA bank reconciliation, you gather the following data:

a. FSA's Cash account shows a balance of $2,256.14 on May 31.

b. The May 31 bank balance is $4,023.05.

c. The bank statement shows that FSA earned $38.19 of interest on its bank balance during May. This amount was added to FSA's bank balance.

d. FSA pays utilities ($250) and insurance ($100) by EFT.

e. The following FSA cheques did not clear the bank by May 31:

Cheque No........... Amount

237......................$ 46.10

288...................... 141.00

291...................... 578.05

293...................... 11.87

294...................... 609.51

295...................... 8.88

296..................... 101.63

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

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

h. On May 31, the FSA treasurer deposited $16.15, which will appear on the June bank statement.

i. The bank statement includes a $300 deposit that FSA did not make. The bank added $300 to FSA'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 $146.67 received from a client.

Requirements

1. Prepare the bank reconciliation for FSA.

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