On August 31, 2024, the general ledger of Knifepoint Cutlery shows a balance for cash of $7,954. Cash receipts yet to be deposited into the checking account total $3,276. The companys balance of cash does not reflect a debit card payment for the purchase of postage expense ($77) or an electronic funds transfer for rent expense ($1,550). The bank statement also revealed the company recorded a debit card transaction for supplies of $402, but the actual amount was $502. These amounts are included in the balance of cash of $2,951 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, 2024.

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