On October 31, 2021, Damon Company's general ledger shows a checking account balance of $8,448. The...

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On October 31, 2021, Damon Company's general ledger shows a checking account balance of $8,448. The company's cash receipts for the month total $74,660, of which $71,380 has been deposited in the bank. In addition, the company has written checks for $72,518, of which $71,288 has been processed by the bank. The bank statement reveals an ending balance of $12,968 and includes the following items not yet recorded by Damon: bank service fees of $320, note receivable collected by the bank of $6,700, and interest earned on the account balance plus from the note of $1,170. After closer inspection, Damon realizes that the bank incorrectly charged the company's account $980 for an automatic withdrawal that should have been charged to another customer's account. The bank agrees to the error. 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.) DAMON COMPANY Bank Reconciliation October 31, 2021 Bank's Cash Balance Company's Cash Balance 12,968 Per general ledger $ 8,448 3,280 Service fees (320) (1.230) Note received 6,700 980 Interest earned 1,170 Per bank statement Deposits outstanding Checks outstanding Bank error Bank balance per reconciliation 15,998 Company balance per reconciliation $ 15,998 On October 31, 2021, Damon Company's general ledger shows a checking account balance of $8,448. The company's cash receipts for the month total $74,660, of which $71,380 has been deposited in the bank. In addition, the company has written checks for $72,518, of which $71,288 has been processed by the bank. The bank statement reveals an ending balance of $12,968 and includes the following items not yet recorded by Damon: bank service fees of $320, note receivable collected by the bank of $6,700, and interest earned on the account balance plus from the note of $1,170. After closer inspection, Damon realizes that the bank incorrectly charged the company's account $980 for an automatic withdrawal that should have been charged to another customer's account. The bank agrees to the error. 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.) DAMON COMPANY Bank Reconciliation October 31, 2021 Bank's Cash Balance Company's Cash Balance 12,968 Per general ledger $ 8,448 3,280 Service fees (320) (1.230) Note received 6,700 980 Interest earned 1,170 Per bank statement Deposits outstanding Checks outstanding Bank error Bank balance per reconciliation 15,998 Company balance per reconciliation $ 15,998