Question

On October 31, 2021, Damon Company's general ledger shows a checking account balance of $8,445. The company's cash receipts for the month total $74,640, of which $71,375 has been deposited in the bank. In addition, the company has written checks for $72,515, of which $71,270 has been processed by the bank points The bank statement reveals an ending balance of $12,895 and includes the following items not yet recorded by Damon: bank service fees of $310, note receivable collected by the bank of $6,600, and interest earned on the account balance plus from the note of $1,120. After closer inspection, Damon realizes that the bank incorrectly charged the company's account $940 for an automatic withdrawal that should have been charged to another customer's account. The bank agrees to the error. eBook Print References Required: 1. Prepare a bank reconciliation to calculate the correct ending balance of cash on October 31, 2021. (Amounts to be deducted should be indicated with a minus sign.) Bank's Cash Balance DAMON COMPANY Bank Reconciliation October 31, 2021 Company's Cash Balance 12.89 Por general ledger 3.265 Note received 90 Interest earned (1,245) Service fees $ Per bank statement Deposits outstanding Bank error Checks outstanding Bank balance per reconciliation $ 15,855 Company balance per reconciliation 15,855

Answer 1

Bank's Cash Balance Per bank statement Deposit outstanding Bank error Checks outstanding Bank balance per reconciliation $ $ $ $ $ DAMON COMPANY Bank Reconciliation October 31, 2021 Company's Cash Balance 12,895 Per general ledger 3,265 Note received 940 Interest earned -1,245 Service fees 15,855 Company balance per reconciliation $ 8,445 6,600 1,120 -310 15,855 $ Credit $ Date General Journal Oct 31, 2021 Cash Interest Revenue Notes Receivable Oct. 31, 2021 Service Fee Expense Cash Debit | 7,720 $ $ 6,600 1,120 $ 310