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On October 31, 2021, Damon Company's general ledger shows a checking account balance of $8.418. The company's cash receipts for the month total $74,460, of

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On October 31, 2021, Damon Company's general ledger shows a checking account balance of $8.418. The company's cash receipts for the month total $74,460, of which $71,330 has been deposited in the bank. In addition, the company has written checks for $72,488, of which $71,108 has been processed by the bank. The bank statement reveals an ending balance of $12,238 and includes the following items not yet recorded by Damon: bank service fees of $220, note receivable collected by the bank of $5,700, and interest earned on the account balance plus from the note of $670. After closer inspection, Damon realizes that the bank incorrectly charged the company's account $580 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 Company's Cash Balance 12,238 Per general ledger 3,130 Interest comed (1,380) Service fees 580 Bank's Cash Balance Per bank statement Deposits outstanding Checks outstanding Bank error $ 8,418 6,370 (220) Bank balance per reconciliation $ 14,568 Company balance per reconciliation $ 14,568 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.) View transaction list Journal entry worksheet Record the amounts that increase cash. Note: Enter debits before credits General Journal Debit Credit Data October 31 2021 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.) View transaction list Journal entry worksheet

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