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26 March, 21:11

On August 31, 2021, the general ledger of The Dean Acting Academy shows a balance for cash of $7,874. Cash receipts yet to be deposited into the checking account total $3,268, and checks written by the academy but not yet processed by the bank total $1,355. The company's balance of cash does not reflect a bank service fee of $28 and interest earned on the checking account of $39. These amounts are included in the balance of cash of $5,972 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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  1. 27 March, 00:37
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    Bank Reconciliation Statement

    Balance at bank as per the Cash Book (updated) $7,885

    Add Unpresented Cheques $1,355

    Less Bank Lodgements not yet credited ($3,268)

    Balance as per bank statement $5,972

    J1

    Bank $39 (debit)

    Interest Earned $39 (credit)

    J2

    Bank service fee $28 (debit)

    Bank $28 (credit)

    Explanation:

    Step 1 Bring the Cash Balance in the Cash Book up to date

    Debit:

    Balance as at August 31, 2021, $7,874

    Interest Earned $39

    Totals $7,913

    Credit:

    Bank service fee $28

    Balance Up dated (Balancing figure) $7,885

    Totals $7,913

    Step 2 Prepare the Bank Reconciliation Statement

    Bank Reconciliation Statement

    Balance at bank as per the Cash Book (updated) $7,885

    Add Unpresented Cheques $1,355

    Less Bank Lodgements not yet credited ($3,268)

    Balance as per bank statement $5,972
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