Question - On August 31, 2012, the general ledger of The Dean Acting Academy shows a balance for cash of $7,943. Cash receipts yet to be deposited into the checking account total $3,264, and checks written by the academy but not yet processed by the bank total $1,310. The company's balance of cash does not reflect a bank service fee of $55 and interest earned on the checking account of $24. These amounts are included in the balance of cash of $5,958 reported by the bank as of the end of August.
Required: Prepare a bank reconciliation to calculate the correct ending balance of cash on August 31, 2012.