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On August 31, 2021, the general ledger of The Dean Acting Academy shows a balance for cash of $7,864. Cash receipts yet to be deposited into the checking account total $3,258, and checks written by the academy but not yet processed by the bank total $1,345. The company's balance of cash does not reflect a bank service fee of $27 and interest earned on the checking account of $38. These amounts are included in the balance of cash of $5,962 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. (Amounts to be deducted should be indicated with a minus sign.)
THE DEAN ACTING ACADEMY
Bank Reconciliation
August 31, 2021
Bank's Cash Balance Company's Cash Balance
Per Bank Statement Per General Ledger
Bank Balance per Reconciliation Company Balance per Reconciliation
Record the necessary entry(ies) to adjust the balance for cash. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Sagot :

Explanation:

The Preparation of bank reconciliation is shown below:-

                         The Dean Acting Academy

                                 Bank reconciliation

                                   August 31, 2021

Bank cash balance      Amount     Company cash balance    Amount

Per bank statement      $5,902        Per general ledger              $7,804

Deposit outstanding   $3,198            Service fees                          ($21)

Checks outstanding   ($1,285)           Interest earned                    $32

Bank balance per                              Company balance per

reconciliation            $7,815       reconciliation                   $7,815

2. The Journal entries are shown below:-

a. Cash  Dr, $32

      To Interest Revenue  $32

(Being note and interest collected by the bank is recorded)

Here we debited the cash as it increased the assets and we credited the interest revenue as it also increased the revenue

b. Service Fee Expense  Dr, $21

       To Cash  $24

(Being bank service fee is recorded)

Here we debited the service fee expenses as it increased the expense and we credited the cash as it decreased the assets Credits to xlvtifax9856 founded on brainly.

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