Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

the second entry is record the amounts that decrease cash On October 31, 2021, Damon Company's general ledger shows a checking account balance of

image text in transcribedimage text in transcribedthe second entry is " record the amounts that decrease cash"

On October 31, 2021, Damon Company's general ledger shows a checking account balance of $8,415. The company's cash receipts for the month total $74,440, of which $71,325 has been deposited in the bank. In addition, the company has written checks for $72,485, of which $71,090 has been processed by the bank. The bank statement reveals an ending balance of $12,165 and includes the following items not yet recorded by Damon: bank service fees of $210, note receivable collected by the bank of $5,600, and interest earned on the account balance plus from the note of $620. After closer inspection, Damon realizes that the bank incorrectly charged the company's account $540 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 12,019 Per general ledger Bank's Cash Balance Per bank statement $ $ 8,049 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.) 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Strayer University

1st Edition

0470603526, 978-0470603529

More Books

Students also viewed these Accounting questions

Question

a sin(2x) x Let f(x)=2x+1 In(be)

Answered: 1 week ago

Question

Did you print a proof to view color and image consistency?

Answered: 1 week ago