On October 31, 2018, Damon Companys general ledger shows a checking account balance of $8,409. The companys cash receipts for the month total $74,400, of which $71,315 has been deposited in the bank. In addition, the company has written checks for $72,479, of which $71,054 has been processed by the bank.

The bank statement reveals an ending balance of $12,019 and includes the following items not yet recorded by Damon: bank service fees of $190, note receivable collected by bank of $5,400, and interest earned on the account balance plus from the note of $520. After closer inspection, Damon realizes that the bank incorrectly charged the companys account $460 for an automatic withdrawal that should have been charged to another customers account. The bank agrees to the error.

1. Prepare a bank reconciliation to calculate the correct ending balance of cash on October 31, 2018

DAMON COMPAN

Bank's cash balace

Company's cash balance

Per bank statement -	Per general ledger
-	-
-	-
-	-
-	-
Bank balance per reconciliation -	Company balance per reconciliation -

# Ex) Bank error, checks outstanding, Deposits outstanding, Interest earned, Note received, and Service fees.

2. Record the necessary entries 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.)

1.Record the amounts that increase cash

2. Record the amounts that decrease cash