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Question - On August 31, 2021, the general ledger of The Dean Acting Academy shows a balance for cash of $7,944. Cash receipts yet to be deposited into the checking account total $3,338, and checks written by the academy but not yet processed by the bank total $1,425. The company's balance of cash does not reflect a bank service fee of $35 and interest earned on the checking account of $46. These amounts are included in the balance of cash of $6,042 reported by the bank as of the end of August.
Required -
1. Prepare a bank reconciliation to calculate the correct ending balance of cash on August 31, 2021.
2. Record the necessary entry(ies) to adjust the balance for cash.
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