Bank reconciliation and journalize

a) FSA’s cash account shows a balance of 6,570.57 on Aug. 31

b) The august 31 bank balance is 8,457.95

c) The bank statement shows that FSA earned 15.45 of interest on its bank balance during August. This amount was added to FSA’s bank balance.

d) FSA pays utilities ($230) and insurance ($60) by EFT

e) The following FSA cheques did not clear the bank by August 31:

Cheque No. Amount

237 46.40

288 145

291 598.65

293 11.07

294 609.47

295 8.62

296 103.54

f) The bank statement includes donation of $800 electronically deposited to the bank for FSA

g) The bank statement lists a 8.50 bank service charge

h) On august 31, FSA treasurer deposited 15.65 which will appear on the September bank statement.

i) The bank statement includes a 395 deposit that FSA did not make. The bank added 395 to FSA account for another company’s deposit.

j) The bank statement includes two charges for returned cheques from donors. One is a 385 cheque received from donor with imprint unauthorized signature. The other is a non-sufficient funds cheque in the amount of 146.67 received from a client


Requirement 1. Prepare the bank reconciliation for FSAFSA.

Requirement 2.Journalize the August 31 transactions needed to update FSA?’s

Cash account. Include an explanation for each entry. Begin by recording the interest earned on the bank balance.

· Recod the electronic deposit by the bank

· Record the EFT payment utilities

· Record EFT payment insurance

· Record the service charge

· 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.