On August 31, 2018, the general ledger of The Dean Acting Academy shows a balance for cash of $7,814. Cash receipts yet to be deposited into the checking account total $3,208, and checks written by the academy but not yet processed by the bank total $1,295. The company's balance of cash does not reflect a bank service fee of $22 and interest earned on the checking account of $33. These amounts are included in the balance of cash of $5,912 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, 2018. (Amounts to be deducted should be indicated with a minus sign.)

2. Record the necessary entry(ies) to adjust the balance for cash. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)