4-3A Prepare the bank reconciliation and record cash adjustments (LO4-5) [The following information applies to the questions displayed below.) The cash records and bank statement for the month of May for Diaz Entertainment are shown below. Cash Balance May 1, 2021 +Cash Receipts $11,690 DIAZ ENTERTAINMENT Cash Account Records May 1, 2021, to May 31, 2021 Cash Disbursements $11,800 Cash Balance $5,350 Cash Receipts May 31, 2021 $5,240 Cash Disbursements Date: Desc. Amount Date Checks Desc. 5/3 Sales $ 1,390 5/7 471 Legal fees Amount $1,230 5/10 Sales 1,820 5/12 472 Property tax 1,600 5/17 Sales 2,450 5/15 473 Salaries 5/24 Sales 2,920 5/22 474 Advertising 5/31 Sales 3,110 5/30 475 Supplies 5/31 476 Salaries 3,530 1,430 480 3,530 $11,690 $11,800 P.O. Box 162647 Bowlegs, OK 74830 (405) 369-CASH Account Holder:: Beginning Balance May 1, 2021 $6,190 Diaz Entertainment 124 Saddle Blvd, Bowlegs, OK 74830 Deposits and Credits Midwest Bank Looking Out For You Member FDIC Account Number: 7772854360 Statement Date: May 31, 2021 Account Summary Deposits and Credits Withdrawals and Debits NO. Total 7 $9,656 NO. 9 Total $9,533 Account Details Ending Balance May 31, 2021 $6,313 Daily Balance Withdrawals and Debits P.O. Box 162647 Bowlegs, OK 74830 (405) 369-CASH Account Holder: Beginning Balance May 1, 2021 $6,190 Diaz Entertainment 124 Saddle Blvd, Bowlegs, OK 74830 Deposits and Credits Midwest Bank Looking Out For You Account Details Member FDIC Account Number: Statement Date: 7772854360 May 31, 2021 Account Summary Deposits and Credits Withdrawals and Debits NO. 7 Ending Balance Total $9,656 NO. 9 Total May 31, 2021 $9,533 $6,313 Withdrawals and Debits Date Daily Balance Amount Desc. Date No. Amount Desc. Date Amount 5/4 $ 1,390 DEP 5/1 469 $ 480 CHK 5/1 $5,710 5/11 1,820 DEP 5/2 470 360 CHK 5/2 5,350 5/18 2,450 DEP 5/9 471 1,230 CHK 5/4 6,740 5/20 1,000 NOTE 5/11 330 NSF 5/9 5,510 5/20 53 INT 5/12 472 1,600 CHK 5/11 7,000 5/25 2,920 DEP 5/18 473 3,530 CHK 5/12 5,400 5/31 23 INT 5/20 530 EFT 5/18 4,320 5/25 474 1,430 CHK 5/20 4,843 5/31 43 SF 5/25 6,333 $ 9,656 $9,533 5/31 $6,313 Desc. DEP Customer deposit NOTE Note collected INT Interest earned CHK Customer check SF Service fees NSF Nonsufficient funds) EFT Electronic funds transfer 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, 2021 (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. Problem 4-3A Part 1 Required: 1. Prepare a bank reconciliation for Diaz's checking account on May 31, 2021. (Amounts to be deducted should be indicated with a minus sign. Total entries to the same account together when entering in the bank reconciliation.) Bank's Cash Balance Per bank statement Deposits outstanding Checks outstanding DIAZ ENTERTAINMENT Bank Reconciliation May 31, 2021 Company's Cash Balance Per general ledger Bank error Bank balance per reconciliation Interest earned Note collected NSF check Service fees Company balance per reconciliation Journal entry worksheet < 2 Record the amounts that increase cash. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal > Required information Journal entry worksheet < 1 2 Record the amounts that decrease cash. Note: Enter debits before credits. Transaction. 2 General Journal Debit Credit Record entry Clear entry View general journal