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 $4,870.
b. The bank statement includes two charges for NSF checks from customers. One is for $400 (#1), and the other is for $110 (#2).
c. The following Stout Street Healthcare checks are outstanding at August 31:
Check No. Amount
237 $50
288 $170
291 $520
294 $580
295 $50
296 $140
e. The bank statement includes two special deposits that Stout Street Healthcare hasn't recorded yet - $970 for dividend revenue, and $80 for the interest revenue Stout Street Healthcare.
f. The bank statement lists a $30 subtraction for the bank service charge.
g. On August 31, the Stout Street Healthcare's treasurer deposited $350, but this deposit does not appear on the bank statement.
h. The bank statement includes a $1,000 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 $2,900 on August 31.
Requirements:
1. Prepare the bank reconciliation for Stout Street Healthcare at August 31, 2025.
2. Book Additions $2,350
3. Journalize any required entries from the bank reconciliation. Include an explanation for each entry.
