On August 31, 2015, the general ledger of The Dean Acting Academy shows a balance for cash of $7,804. Cash receipts yet to be deposited into the checking account total $3,198, and checks written by the academy but not yet processed by the bank total $1,285. The company's balance of cash does not reflect a bank service fee of $21 and interest earned on the checking account of $32. These amounts are included in the balance of cash of $5,902 reported by the bank as of the end of August.

1.	Prepare a bank reconciliation to calculate the correct ending balance of cash on August 31, 2015.

2.	Record the necessary entry(ies) to adjust the balance for cash.