Exercise 4-11A Calculate the balance of cash using a bank reconciliation (LO4-5) On October 31, 2021, Damon Company's general ledger shows a checking account balance of $8,433. The company's cash recei for the month total $74,560, of which $71,355 has been deposited in the bank. In addition, the company has written checks for $72,503, of which $71,198 has been processed by the bank. The bank statement reveals an ending balance of $12,603 and includes the following items not yet recorded by Damon: bank serv fees of $270, note receivable collected by the bank of $6,200, and interest earned on the account balance plus from the note of $920. After closer inspection, Damon realizes that the bank incorrectly charged the company's account $780 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 she be indicated with a minus sign.) Answer is complete and correct.
Exercise 4-11A Calculate the balance of cash using a bank reconciliation (LO4-5) On October 31, 2021, Damon Company's general ledger shows a checking account balance of $8,433. The company's cash recei for the month total $74,560, of which $71,355 has been deposited in the bank. In addition, the company has written checks for $72,503, of which $71,198 has been processed by the bank. The bank statement reveals an ending balance of $12,603 and includes the following items not yet recorded by Damon: bank serv fees of $270, note receivable collected by the bank of $6,200, and interest earned on the account balance plus from the note of $920. After closer inspection, Damon realizes that the bank incorrectly charged the company's account $780 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 she be indicated with a minus sign.) Answer is complete and correct.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:ces
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.
Date
October 31,
2021
General Journal
Debit
Credit
***
Check
Transcribed Image Text:Exercise 4-11A Calculate the balance of cash using a bank reconciliation (LO4-5)
On October 31, 2021, Damon Company's general ledger shows a checking account balance of $8,433. The company's cash receipts
for the month total $74,560, of which $71,355 has been deposited in the bank. In addition, the company has written checks for
$72,503, of which $71,198 has been processed by the bank.
The bank statement reveals an ending balance of $12,603 and includes the following items not yet recorded by Damon: bank servic
fees of $270, note receivable collected by the bank of $6,200, and interest earned on the account balance plus from the note of
$920. After closer inspection, Damon realizes that the bank incorrectly charged the company's account $780 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 shou
be indicated with a minus sign.)
Bank's Cash Balance
Answer is complete and correct.
DAMON COMPANY
Bank Reconciliation
October 31, 2021
Company's Cash Balance
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