On August 31, 2021, the general ledger of The Dean Acting Academy shows a balance for cash of $7,764. Cash receipts yet to be deposited into the checking account total $3,158, and checks written by the academy but not yet processed by the bank total $1,245. The company's balance of cash does not reflect a bank service fee of $17 and interest earned on the checking account of $28. These amounts are included in the balance of cash of $5,862 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.)
2. 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.)