On October 31, 2021, Damon Company's general ledger shows a checking account balance of $8,448. The...
Get step-by-step solutions with AI-powered insights and expert guidance to help you understand core concepts.
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6655e5e485de6_4446655e5e47eb2b.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6655e5e4cd283_4446655e5e4c7fc8.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6655e5e51bf5d_4456655e5e516f29.jpg)
Transcribed Image Text:
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
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Select a restaurant, supermarket, church, or some other familiar organization, and think about which kinds of OBs and procedures are the most important determinant of its effectiveness.
-
A need arises in a laboratory to conduct experiments in an atmosphere of phosgene, which is highly toxic. The experiments will be conducted inside a plywood box designed to contain a mixture of...
-
Company E reported net income of $100,000 for 20X1. Assume the income was earned evenly throughout the year. Dividends of $10,000 were paid on December 31. What will Company R report as investment...
-
Patagucci Inc. manufactures and sells athletic equipment. The company began operations on August 1, 2012, and operated at 100% of capacity (66,000 units) during the first month, creating an ending...
-
1 9 You must still calculate the estimated operating free cash flow for the year 2 0 1 9 . The result obtained should be: A . 5 8 4 B . 2 , 0 2 7 C . 1 , 3 8 7 D . 1 , 6 8 7 2 0 The enterprise value...
-
Margin of Safety a. If Canace Company, with a break-even point at $328,600 of sales, has actual sales of $530,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of...
-
Cauchy's sequence theorem
-
QUESTION: 1 Discuss Local Government and Administration of Tanzania
-
Discuss how Central Governments Exercise Control over Local Governments by Citing Examples
-
Find derivative of sin x,cos a,tan x,secx,csca, cot a
-
Find anti derivative of cos x,sin x,sec r,sec r tan r,csc xcotx,csc r
-
Which of the following is the key task when Senior Leaders are in the Reframing process? Select one: a. Provide Support: Review and Channel Ideas. b. Give Permission to Innovate: Create a Fair...
-
How can potential conflicts (coupling) between functional requirements be identified?
-
8. Calculate the taxpayers 2021 qualified business income deduction for a qualified trade or business: Filing status: Single Taxable income: $100,000 Net capital gains: $0 Qualified business income...
-
5. Bob is a farmer and is required to use the accrual method. At the beginning of the year, Bob has inventory, including livestock held for resale, amounting to $10,000. During the year, Bob...
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App