On August 31, 2024, 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. The company’s balance of cash does not reflect a debit card payment for the purchase of postage expense ($75) or an electronic funds transfer for rent expense ($1,500). The bank statement also revealed the company recorded a debit card transaction for supplies of $400, but the actual amount was $500. These amounts are included in the balance of cash of $2,931reported 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, 2024.
2. Record the necessary entry(ies) to adjust the balance for cash.