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Plz help On October 31, 2021, Damon Company's general ledger shows a checking account balance of $8,436. The company's cash receipts for the month total
Plz help On October 31, 2021, Damon Company's general ledger shows a checking account balance of $8,436. The company's cash receipts for the month total $74,580, of which $71,360 has been deposited in the bank. In addition, the company has written checks for $72,506, of which $71,216 has been processed by the bank. The bank statement reveals an ending balance of $12,676 and includes the following items not yet recorded by Damon: bank service fees of $280, note receivable collected by the bank of $6,300, and interest earned on the account balance plus from the note of $970. After closer inspection, Damon realizes that the bank incorrectly charged the company's account $820 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.) Answer is complete but not entirely correct. DAMON COMPANY Bank Reconciliation October 31, 2021 Company's Cash Balance $ 12,676 Per general ledger Bank's Cash Balance Per bank statement $ 8,436 Deposits outstanding Bank error Checks outstanding Bank balance per reconciliation 3,220 820 1,290 15,426 Note received Interest earned Service fees Company balance per reconciliation 6,300 970 280 $ 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.) Answer is not complete. General Journal No Debit Credit 1 October 31, 2021 Cash 6,300 Notes Receivable 6,300 2 1,290 October 31, 2021 Cash Interest Revenue Service Fee Expense Cash 1,290 280 280
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