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On October 31, 2021, Damon Company's general ledger shows a checking account balance of $8,430. The company's cash receipts for the month total $74,540, of which $71,350 has been deposited in the bank. In addition, the company has written checks for $72,500, of which $71,180 has been processed by the bank. The bank statement reveals an ending balance of $12,530 and includes the following items not yet recorded by Damon: bank service fees of $260, note receivable collected by the bank of $6,100, and interest earned on the account balance plus from the note of $87 After closer inspection, Damon realizes that the bank incorrectly charged the company's account $740 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's Cash Balance Bank Reconciliation October 31, 2021 Company's Cash Balance Per general ledger Service fees Per bank statement Deposits outstanding Checks outstanding Interest earned 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.) Journal entry worksheet Record the amounts that increase cash. Note: Enter debits before credits. Date General Journal Debit Credit October 31, 2021 Cash Interest Revenue Record entry Clear entry View general journal Journal entry worksheet

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