The May 31 bank statement of Wood’s Healthcare has just arrived from Federal Bank. To prepare the bank reconciliation, you gather the following data.
Data list:

a. The May 31 bank balance is \($4,860\).

b. The bank statement includes two charges for NSF checks from customers. One is for \($380\) (#1), and the other for \($100\) (#2).

c. The following Wood checks are outstanding at May 31

d. Wood collects from a few customers by EFT. The May bank statement lists a \($1,100\) EFT deposit for a collection on account.

e. The bank statement includes two special deposits that Wood hasn’t recorded yet: \($870,\) for dividend revenue, and \($10,\) the interest revenue Wood earned on its bank balance during May.

f. The bank statement lists a \($40\) subtraction for the bank service charge.

g. On May 31, the Wood treasurer deposited \($300,\) but this deposit does not appear on the bank statement.

h. The bank statement includes a \($900\) deduction for a check drawn by Multi-State Freight Company. Wood notified the bank of this bank error.

i. Wood’s Cash account shows a balance of \($3,000\) on May 31.

Requirements 

1. Prepare the bank reconciliation for Wood’s Healthcare at May 31, 2012.
2. Journalize any required entries from the bank reconciliation. Include an explanation for each entry.

Transcribed Image Text:

Check No. Amount 237 S 60 288 180 291 570 294 600 295 60 296 130