The August 31 bank statement of Dickson Engineering Associates has just arrived from Carolina First Bank. To prepare the Dickson bank reconciliation, you gather the following data:

a. Dickson’s Cash account shows a balance of $8,152.71 on August 31.

b. The August 31 bank balance is $8,879.24.

c. The bank statement shows that Dickson earned $15.85 of interest on its bank balance during August. This amount was added to Dickson’s bank balance.

d. Dickson pays utilities ($730) and insurance ($280) by EFT.

e. The following Dickson checks did not clear the bank by August 31:

Check No. Amount

237 ............$401.00

288 ............ 74.82

291 ............ 33.25

293 ............ 165.55

294 ............ 236.00

295 ............ 47.75

296 ............ 107.85

f. The bank statement includes a deposit of $899.15, collected on account by the bank on behalf of Dickson.

g. The bank statement lists a $5.50 bank service charge.

h. On August 31, the Dickson treasurer deposited $383.54, which will appear on the September bank statement.

i. The bank statement includes a $398.00 deposit that Dickson did not make. The bank added $398.00 to Dickson’s account for another company’s deposit.

j. The bank statement includes two charges for returned checks from customers. One is a $185.50 check received from a customer with the imprint Unauthorized Signature. The other is a nonsufficient funds check in the amount of $68.15 received from another customer.

Requirements

1. Prepare the bank reconciliation for Dickson Engineering Associates.

2. Journalize the August 31 transactions needed to update Dickson’s Cash account. Include an explanation for each entry.