Adjustments for unearned revenues: Select one: a. decrease liabilities and increase revenues. b. increase liabilities and increa
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Answer:
Explanation:
Bank Reconciliation: The bank reconciliation deals with the bank statement balance and the cash statement balance. The motive is to compare these two statements so that the organization can run in the smoothly manner.
There are various transactions due to which the bank statement balance and the cash statement balance do not match. To match these statements, we adjust the transactions accordingly.
The outstanding deposits is computed below:
= Company cash receipts - bank deposited
= $74,640 - $71,375
= $3,265
And, the outstanding checks is computed below:
= Company written checks - Processed by bank
= $72,515 - $71,270
= $1,245
The preparation of the bank reconciliation statement on October 31, 2015 for Damon Company's is presented in the spreadsheet. Kindly find the attachment below:
