Question

On August 31, 2021, the general ledger of The Dean Acting Academy shows a balance for cash of $7864. 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

Answer 1

THE DEAN ACTING ACADEMY Bank Reconciliation August 31, 2021 Company's Cash Balance 5,962 Per general ledger 3,258 Service fees -1,345 Interest earned 7,875 Company balance per reconciliation Bank's Cash Balance Per bank statement Deposits outstanding Checks outstanding Bank balance per reconciliation 7,864 27 38 7,875 Debit Credit $ Date General Joumal Aug. 31, 2021 Cash Interest Revenue Aug. 31, 2021 Service Fee Expense Cash $ 38