On October 31, 2021, Damon Companys general ledger shows a checking account balance of $8,400. The companys cash receipts for the month total $74,340, of which $71,300 has been deposited in the bank. In addition, the company has written checks for $72,470, of which $71,000 has been processed by the bank.

The bank statement reveals an ending balance of $11,800 and includes the following items not yet recorded by Damon: bank service fees of $160, note receivable collected by the bank of $5,100, and interest earned on the account balance plus from the note of $370. After closer inspection, Damon realizes that the bank incorrectly charged the companys account $340 for an automatic withdrawal that should have been charged to another customers 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.)

finish both charts and explain please :)

Journal entry worksheet Record the amounts that increase cash. Note: Enter debits before credits. General Journal Debit Credit Date October 31, 2021 Journal entry worksheet Record the amounts that decrease cash. Note: Enter debits before credits. General Journal Debit Credit Date October 31, 2021