The cash records and bank statement for the month of May for Diaz Entertainment are shown below.

Additional information:
a. The difference in the beginning balances in the company’s records and the bank statement relates to checks #469 and #470, which are outstanding as of April 30, 2024 (prior month).
b. The bank made the EFT on May 20 in error. The bank accidentally charged Diaz for payment that should have been made on another account.

Required:
1. Prepare a bank reconciliation for Diaz’s checking account on May 31, 2024.
2. Record the necessary cash adjustments.

Transcribed Image Text:

Cash Balance May 1, 2024 $5,280 Cash Receipts Date Desc. 5/3 Sales 5/10 Sales 5/17 Sales 5/24 Sales 5/31 Sales DIAZ ENTERTAINMENT Cash Account Records May 1, 2024, to May 31, 2024 Cash Receipts $12,040 Amount $ 1,460 1,890 2,520 2,990 3,180 $12,040 - Date 5/7 5/12 5/15 5/22 5/30 5/31 Cash Disbursements $12,220 Desc. Cash Disbursements DC DC DC DC Cash Balance May 31, 2024 $5,100 CHK #471 CHK #472 Memo Legal fees Property tax Salaries Advertising Supplies Salaries Amount $ 1,300 1,670 3,600 1,500 550 3,600 $12,220