Question: On August 31, 2018, 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, and checks written by the academy but not yet processed by the bank total $1,425. The company's balance of cash does not reflect a bank service fee of $35 and interest earned on the checking account of $46. These amounts are included in the balance of cash of $6,042 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.)
Spielberg Company's general ledger shows a checking account balance of $22,900 on July 31, 2018. The July cash receipts of $1,815, included in the general ledger balance, are placed in the night depository at the bank on July 31 and processed by the bank on August 1. The bank statement dated July 31 shows bank service fees of $48. The bank processes all checks written by the company by July 31 and lists them on the bank statement, except for one check totaling $1,390. The bank statement shows a balance of $22,427 on July 31.
Required: 1. Prepare a bank reconciliation to calculate the correct ending balance of cash on July 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.)