On October 31, 2021, Damon Companys general ledger shows a checking account balance of $8,421. The companys cash receipts for the month total $74,480, of which $71,335 has been deposited in the bank. In addition, the company has written checks for $72,491, of which $71,126 has been processed by the bank.

The bank statement reveals an ending balance of $12,311 and includes the following items not yet recorded by Damon: bank service fees of $230, note receivable collected by the bank of $5,800, and interest earned on the account balance plus from the note of $720. After closer inspection, Damon realizes that the bank incorrectly charged the companys account $620 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.) DAMON COMPANY Bank Reconciliation Bank's Cash Balance October 31, 2021 Company's Cash Balance 8,421 Per general ledger Per bank statement Deposits outstanding Checks outstanding Service fees Bank balance per reconciliation Company balance per reconciliation 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.) 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 Date October 31, 2021 Record entry Clear entry View general journal