On October 31, 2021, Damon Company's general ledger shows a checking account balance of $8,439. The company's cash receipts for the month total $74,600, of which $71,365 has been deposited in the bank. In addition, the company has written checks for $72,509, of which $71,234 has been processed by the bank. The bank statement reveals an ending balance of $12,749 and includes the following items not yet recorded by Damon: bank service fees of $290, note receivable collected by the bank of $6,400, and interest earned on the account balance plus from the note of $1,020. After closer inspection, Damon realizes that the bank incorrectly charged the company's account $860 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 Bank's Cash Balance Company's Cash Balance Per bank statement Per general ledger Bank balance per reconciliation Company balance per reconciliation

On October 31, 2021, Damon Company's general ledger shows a checking account balance of $8,439. The company's cash receipts for the month total $74,600, of which $71,365 has been deposited in the bank. In addition, the company has written checks for $72,509, of which $71,234 has been processed by the bank. The bank statement reveals an ending balance of $12,749 and includes the following items not yet recorded by Damon: bank service fees of $290, note receivable collected by the bank of $6,400, and interest earned on the account balance plus from the note of $1,020. After closer inspection, Damon realizes that the bank incorrectly charged the company's account $860 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 Bank's Cash Balance Company's Cash Balance Per bank statement Per general ledger Bank balance per reconciliation Company balance per reconciliation

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter6: Bank Accounts, Cash Funds, And Internal Controls

Section: Chapter Questions

Problem 4PA

See similar textbooks

Related questions

Q: In the month of May, Fredricksburg Company Inc. wrote checks in the amount of $64,750. In June,…

A: Outstanding checks (May)=Checks written in May-Checks presented=$64,750-$59,276=$5,474

Q: Nickleson Company had an unadjusted cash balance of $9,497 as of May 31. The company's bank…

A: Bank reconciliation statement means the statement where the bank balance as per cash book and bank…

Q: Required: 1. Prepare a bank reconciliation at August 31. 2. Prepare the necessary adjusting journal…

A: Bank Reconciliation Statement is an account prepared to match the balances as per firm's cash book…

Q: The cash in bank account of Smart, Inc. for April showed an ending balance of P129,298. Deposits in…

A: Cash account is useful for tracking payments and receipts and movement of cash. It is an important…

Q: enry Inc. is preparing the monthly bank reconciliation of its checking account balance for the month…

A: The bank reconciliation statement is prepared to equate the balances of the cash book and pass book…

Q: The bank statement for Betty Company indicates a balance of $20,000 on September 30, 2021. After the…

A: Bank reconciliation: It is a statement drawn up by the business to verify the cash book balance with…

Q: At July 31, Sheffield Company has the following bank information: cash balance per bank $7,430,…

A: Adjusted cash balance per bank: Adjusted cash balance per bank is calculated by making the…

Q: Peterson Company's general ledger shows a cash balance of $7,450 on May 31. May cash receipts of…

A: Bank reconciliation statement is prepared to reconcile the entity's bank account with its financial…

Q: Nickleson Company had an unadjusted cash balance of $6.351 as of May 31. The company's bank…

A: Formula: True cash balance = Unadjusted cash balance + notes collected by bank + revenues - service…

Q: The cash account of Sheffield Co. showed a ledger balance of $7,088.13 on June 30, 2020. The bank…

A: The bank reconciliation statement is prepared to equate the balances of cash book and passbook with…

Q: The Cash account of Ranger Security Systems reported a balance of $2,550 at December 31, 2025. There…

A: BANK RECONCILIATION STATEMENTA bank reconciliation statement is a financial document that reconciles…

Q: Peterson Company's general ledger shows a cash balance of $7,480 on May 31. May cash receipts of…

A: Bank reconciliation statement is used to determine the differences between the bank statement…

Q: The Cash account of Gate City Security Systems reported a balance of $2,490 at December 31, 2024.…

A: Balance as per Bank :- $ 3810 Balance as per Books :- $ 2490

Q: On December 31, 2020, the cash account of Jungkook Company showed a balance of P396,980. Upon…

A: Bank reconciliation: It is a statement drawn up by the business to verify the cash book balance with…

Q: On October 31, 2024, Crowe Company's general ledger shows a cash account balance of $8,409. The…

A: Journal Entry :— It is an act of recording transaction in books of account when transaction…

Q: Spielberg Company’s general ledger shows a cash account balance of $23,220 on July 31, 2024. Cash…

A: The bank reconciliation statement is the one which is prepared by the entity to adjust the…

Q: Egrane, Incorporated's monthly bank statement showed the ending balance of cash of $20,400. The bank…

A: Businesses typically utilise a bank reconciliation statement to look for errors that could affect…

Q: On July 31, 2020, Keeds Company had a cash balance per books of $6,140. The statement from Dakota…

A: Bank Reconcilation Statement : PARTICULARS AMOUNT AMOUNT BALANCE AS PER CASH BOOK (a) $6140…

Q: The bank statement of Gig'em, Inc for February 28, 2020, showed an ending balance of $6,641. The…

A: The bank reconciliation statement indicates the true cash balance.

Concept explainers

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

Question

On October 31, 2021, Damon Company's general ledger shows a checking account balance of $8,439. The company's cash receipts
for the month total $74,600, of which $71,365 has been deposited in the bank. In addition, the company has written checks for
$72,509, of which $71,234 has been processed by the bank.
The bank statement reveals an ending balance of $12,749 and includes the following items not yet recorded by Damon: bank service
fees of $290, note receivable collected by the bank of $6,400, and interest earned on the account balance plus from the note of
$1,020. After closer inspection, Damon realizes that the bank incorrectly charged the company's account $860 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
Bank's Cash Balance
Company's Cash Balance
Per bank statement
Per general ledger
Bank balance per reconciliation
Company balance per reconciliation

Journal entry worksheet
1
Record the amounts that decrease cash.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
October 31,
2021
Record entry
Clear entry
View general journal

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Concept Introduction

VIEW

1) Bank reconciliation

VIEW

2) Journal Entries

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

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 service 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 should be indicated with a minus sign.) DAMON COMPANY Bank Reconciliation…
On October 31, 2021, Damon Company’s general ledger shows a checking account balance of $8,397. The company’s cash receipts for the month total $74,320, of which $71,295 has been deposited in the bank. In addition, the company has written checks for $72,467, of which $70,982 has been processed by the bank.The bank statement reveals an ending balance of $11,727 and includes the following items not yet recorded by Damon: bank service fees of $150, note receivable collected by the bank of $5,000, and interest earned on the account balance plus from the note of $320. After closer inspection, Damon realizes that the bank incorrectly charged the company’s account $300 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, 2021.2. Record the necessary entries to adjust the balance for cash.
On October 31, 2021, Damon Company's general ledger shows a checking account balance of $8,439. The company's cash receipts for the month total $74,600, of which $71,365 has been deposited in the bank. In addition, the company has written checks for $72,509, of which $71,234 has been processed by the bank. The bank statement reveals an ending balance of $12,749 and includes the following items not yet recorded by Damon: bank service fees of $290, note receivable collected by the bank of $6,400, and interest earned on the account balance plus from the note of $1,020. After closer inspection, Damon realizes that the bank incorrectly charged the company's account $860 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…
On October 31, 2024, Gibson Company's general ledger shows a cash account balance of $8,457. The company's cash receipts for the month total $74,720, of which $71,395 has been deposited in the bank. In addition, the company has written checks for $72,527, of which $71,342 has been processed by the bank. The bank statement reveals an ending balance of $13,187 and includes the following items not yet recorded by Gibson: bank service fees of $350, note receivable collected by the bank of $7,000, and interest earned on the note of $1,320. After closer inspection, Gibson realizes that the bank incorrectly charged the company's account $1,100 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, 2024. 2. Record the necessary entries to adjust the balance for cash. Complete this question by entering your answers in the tabs…
On October 31, 2024, Crowe Company's general ledger shows a cash account balance of $8,454. The company's cash receipts for the month total $74,700, of which $71,390 has been deposited in the bank. In addition, the company has written checks for $72,524, of which $71,324 has been processed by the bank. The bank statement reveals an ending balance of $13,114 and includes the following items not yet recorded by Crowe: bank service fees of $340, note receivable collected by the bank of $6,900, and interest earned on the note of $1,270. After closer inspection, Crowe realizes that the bank incorrectly charged the company's account $1,060 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, 2024. 2. Record the necessary entries to adjust the balance for cash. Complete this question by entering your answers in the tabs…
On October 31, 2024, Crowe Company’s general ledger shows a cash account balance of $8,409. The company’s cash receipts for the month total $74,400, of which $71,315 has been deposited in the bank. In addition, the company has written checks for $72,479, of which $71,054 has been processed by the bank. The bank statement reveals an ending balance of $12,019 and includes the following items not yet recorded by Crowe: bank service fees of $190, note receivable collected by the bank of $5,400, and interest earned on the note of $520. After closer inspection, Crowe realizes that the bank incorrectly charged the company’s account $460 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, 2024.2. Record the necessary entries to adjust the balance for cash.
On October 31, 2024, Affleck Company's general ledger shows a cash account balance of $8,442. The company's cash receipts for the month total $74,620, of which $71,370 has been deposited in the bank. In addition, the company has written checks for $72,512, of which $71,252 has been processed by the bank. The bank statement reveals an ending balance of $12,822 and includes the following items not yet recorded by Affleck: bank service fees of $300, note receivable collected by the bank of $6,500, and interest earned on the note of $1,070. After closer inspection, Affleck realizes that the bank incorrectly charged the company's account $900 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, 2024. 2. Record the necessary entries to adjust the balance for cash.
Jansen Company’s general ledger showed a checking account balance of $25,720 at the end of May 2021. The May 31 cash receipts of $2,530, included in the general ledger balance, were placed in the night depository at the bank on May 31 and were processed by the bank on June 1. The bank statement dated May 31, 2021, showed bank service charges of $57. All checks written by the company had been processed by the bank by May 31 and were listed on the bank statement except for checks totaling $2,080. Required: Prepare a bank reconciliation as of May 31, 2021. [Hint: You will need to compute the balance that would appear on the bank statement.]
Spielberg Company’s general ledger shows a checking account balance of $22,970 on July 31, 2021. The July cash receipts of $1,885, included in the general ledger balance, are placed in the night depository at the bank on July 31 and processed by the bank on August 1. The bank statement dated July 31 shows bank service fees of $55. The bank processes all checks written by the company by July 31 and lists them on the bank statement, except for one check totaling $1,460. The bank statement shows a balance of $22,490 on July 31. Required: 1. Prepare a bank reconciliation to calculate the correct ending balance of cash on July 31, 2021. 2. Record the necessary entry(ies) to adjust the balance for cash.
On October 31, 2021, the bank statement for a company shows a balance of $12,676, while the company's records show a balance of $8,436. Information that might be useful in preparing a bank reconciliation follows: --The company’s cash receipts for the month total $74,580, of which $71,360 has been deposited in the bank. --The company has written checks for $72,506, of which $71,216 has been processed by the bank. --Bank service fees of $280 are listed on the bank statement. --In accordance with prior authorization, the bank collected a note receivable of $6,300 and interest earned on the note of $970. --The bank made an automatic withdrawal in error of $820 that should have been charged to different 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.) 2. Record the necessary entries to adjust the balance for…
Spielberg Company’s general ledger shows a cash account balance of $23,220 on July 31, 2024. Cash sales of $1,885 for the last three days of the month have not yet been deposited. The bank statement dated July 31 shows bank service fees of $55 and an NSF check from a customer of $250. The bank processes all checks written by the company by July 31 and lists them on the bank statement, except for one check totaling $1,460. The bank statement shows a balance of $22,490 on July 31. Required: 1. Prepare a bank reconciliation to calculate the correct balance of cash on July 31, 2024. 2. Record the necessary entry(ies) to adjust the balance for cash.
Gray Corporation controls its cash by depositing receipts on a daily basis and making all disbursements by cheque. After all the posting for the month of August 2020 was completed, the cash balance in the general ledger account at the end of the month was $10,475. The bank statement for the month end received from the First National Bank showed the balance to be $18,000. The following data are available for the purpose of reconciling these balances: a. Cash receipts collected on August 31 amounting to $3,000 have been placed in the night depository and do not appear on the bank statement. b. Bank memos previously not available to the company are included with the bank statement. A memo for an NSF cheque, originally received as payment for an account receivable of $3,000, is included. A memo for bank charges of $75 for the NSF cheque is also included. Another memo advises the company that $2,000 Note Receivable has been collected by the bank, ($1,950 deposit and a bank charge of $50).…