The August 31 bank statement of Wyndham Healthcare has just arrived from PerryBank. To prepare the bank reconciliation, you gather the following data: a. The August 31 bank balance is $5,630.
b. The bank statement includes two charges for NSF checks from customers. One is for $390 (#1), and the other is for $140
c. The following Watson checks are outstanding at August 31:

Check No. Amount
237 $90
288 160
291 550
294 620
295 10
296 100

d. Watson collects from a few customers by EFT. The August bank statement lists a $1,700 EFT deposit for a collection on account.
e. The bank statement includes two special deposits that Watson hasn't recorded yet: S850 for dividend revenue, and S60 for the interest revenue Watson earned on its bank balance during August.
f. The bank statement lists a $70 subtraction for the bank service charge.
g. On August 31, the Watson treasurer deposited $310, but this deposit does not appear on the bank statement.
h. The bank statement includes a $700 deduction for a check drawn by Multi-State Freight Company. Watson notified the bank of this bank error.
i. Watson's Cash account shows a balance of $3,100 on August 31.

Required:
1. Prepare the bank reconciliation for Watson's Healthcare at August 31, 2016.
2. Journalize any required entries from the bank reconciliation. Include an explanation for each entry.