On October 31, 2015, Damon Company\'s general ledger shows a checking account ba

Question

On October 31, 2015, Damon Company's general ledger shows a checking account balance of $8,448. the company's cash receipts for the month total $74,660, of which $71,380 has been deposited in the bank. In addition, the company has written checks for $72,518, of which $71, 288 has been processed by the bank. the bank statement reveals an ending balance of $12,968 and includes the following items not yet recorded by Damon: bank sen/ice fees of $320, note receivable collected by bank of $6,700, and interest earned on the account balance plus from the note of $1,170. After closer inspection, Damon realizes that the bank incorrectly charged the company's account $980 for an automatic withdrawal that should have been charged to another customer's account. the bank agrees to the error. Required: Prepare a bank reconciliation to calculate the correct ending balance of cash on October 31, 2015.

Explanation / Answer

DAMON COMPANY
BANK RECONCILIATION
31,OCTOBER 2015
Bank's Cash Balance Amount Company's Cash Balance Amount


Per Bank Statement $ 12,968.00 Per General Ledger $    8,448.00
Deposit outstanding $    3,280.00 Note Received $    6,700.00
Check Outstanding $ (1,230.00) Interest Earned $    1,170.00
Bank error $        980.00 Bank service fees $     (320.00)
Total $ 15,998.00 Total $ 15,998.00
Deposit outstanding $    3,280.00
check Otstanding $    1,230.00

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