1)On August 31, 2021, the general ledger of The Dean Acting Academy shows a balance for cash of $7,894. Cash receipts yet to be deposited into the checking account total $3,288, and checks written by the academy but not yet processed by the bank total $1,375. The company's balance of cash does not reflect a bank service fee of $30 and interest earned on the checking account of $41. These amounts are included in the balance of cash of $5,992 reported by the bank as of the end of August.

a)Prepare a bank reconciliation to calculate the correct ending balance of cash on August 31, 2021.

b) Record the necessary entry(ies) to adjust the balance for cash increase and decrease.