Timothy was tasked with creating the budget for the next fiscal year. He had to create a cost-profit analysis report of all the

Answer:

Retained profits.

Explanation:

This typically happens when a business funds its operations through earnings generated from the sale of goods or services.

The income that Carol's Clothiers earns from the sales it conducts, referred to as retained earnings, acts as the main source of capital for expanding their operations.

Furthermore, as an LLP (limited liability partnership), where certain or all partners may have restricted responsibilities, they can utilize their retained earnings to provide dividends to shareholders or to repurchase shares.

Answer:

1.                                Damon Company

                     Bank Reconciliation Statement

                               October 31, 2018

Bank Balance                        

                                                                        Amount$

Bank cash balance as per statement             11,725

Add: Adjustment

       Deposits outstanding                               3,025

       (74,320 - 71,295)

       Bank error                                                  300

Less: Adjustment

         Check outstanding                                  1,485

         (72,467 - 70,983)

Bank balance as per Reconciliation              $13,567

Company's Cash balance

                                                                                   Amount$

Company's Cash balance as per General Ledger    8,397

Add: Adjustment

         Interest earned                                                    320

         Note collected                                                      5,000

Less: Adjustment

         Bank service fees                                                 150

Company's Cash balance as per Reconciliation         13,567

Thus, the accurate cash balance as of December 31, 2016 is $13,567

2. Required entries to modify the cash balance.

Date      Account Title and Explanation               Debit     Credit

31 Oct   Cash                                                            $5,320

                   Notes Receivables                                              $500

                    Interest revenue                                                 $320

              (For recording cash increase)

Date   Account Title and Explanation               Debit     Credit

31 Oct  Service charges                                        $150

                  Cash                                                                  $150

            (For recording cash decreases)