P$-$F:$7-29$A$.$ Preparing a bank reconciliation and journal entries $($Learning

Objective $6)$

The August $31$ bank statement of Stout Street Healthcare has just arrived from United Bank. To prepare the bank reconciliation, you gather the following data:

a$.$ The August $31$ bank balance is $\backslash (\backslash$$ $4,870\backslash ).$

b$.$ The bank statement includes two charges for NSF checks from customers. One is for $\backslash (\backslash$$ $400\backslash )(\backslash$#$1),$ and the other is for $\backslash (\backslash$$ $110\backslash )(\backslash$#$2).$

c$.$ The following Stout Street Healthcare checks are outstanding at August $31$:

d$.$ Stout Street Healthcare collects from a few customers by EFT. The August bank statement lists a $\backslash (\backslash$$ $1,300\backslash )$ EFT deposit for a collection on account.

e$.$ The bank statement includes two special deposits that Stout Street Healthcare hasn't recorded yet: $\backslash (\backslash$$ $970\backslash )$ for dividend revenue, and $\backslash (\backslash$$ $80\backslash )$ for the interest revenue Stout Street Healthcare earned on its bank balance during August.

f$.$ The bank statement lists a $\backslash (\backslash$$ $30\backslash )$ subtraction for the bank service charge.

g$.$ On August $31,$ the Stout Street Healthcare's treasurer deposited $\backslash$$$350,$ but this deposit does not appear on the bank statement.

h$.$ The bank statement includes a $\backslash (\backslash$$ $1,000\backslash )$ deduction for a check drawn by Easy Freight Company. Stout Street Healthcare notified the bank of this bank error.

i$.$ Stout Street Healthcare's Cash account shows a balance of $\backslash (\backslash$$ $2,900\backslash )$ on August $31.$

Requirements

$1.$ Book Additions $\backslash (\backslash$$ $2,350\backslash )$

$1.$ Prepare the bank reconciliation for Stout Street Healthcare at August $31,2025.$

$2.$ Journalize any required entries from the bank reconciliation. Include an explanation for each entry.