The January 31 bank statement of Bed & Bath Accessories has just arrived from Royal Bank of

Question:

The January 31 bank statement of Bed \& Bath Accessories has just arrived from Royal Bank of Canada. To prepare, the Bed \& Bath bank reconciliation, you gather the following data:

a. The January 31 bank balance is $\$ 8 ; 400.82$.

b. Bed \& Bath's Cash account shows a balance of $\$ 7,391.55$ on January 31.

c. The following Bed \& Bath cheques are outstanding at January 31: image text in transcribed

d. The bank statement includes two special deposits: $\$ 899.14$, which is the amount of dividend revenue the bank collected from IBM on behalf of Bed \& Bath; and \$16.86, the interest revenue Bed \& Bath earned on its bank balance during January.

e. The bank statement lists a $\$ 6.25$ bank service charge.

f. On January 31 the Bed \& Bath treasurer deposited \$381.14, which will appear on the February bank statement.
g. The bank statement includes a $\$ 410.00$ deduction for a cheque drawn by Bonjovi Music Company.
h. The bank statement includes two charges for returned cheques from customers. One is a nonsufficient funds cheque in the amount of $\$ 67.50$ received from a customer. The other is a $\$ 195.03$ cheque received from another customer. It was returned by the customer's bank with the imprint "Unauthorized Signature."
i. A few customers pay monthly bills by EFT. The January bank statement lists an EFT deposit for sales revenue of $\$ 200.23$.
{Requirements}
1. Prepare the bank reconciliation for Bed \& Bath Accessories at January 31.
2. Journalize the transactions needed to update the Cash account. Include an explanation for each entry.