Question
Problem 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
Problem 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.
| DIAZ ENTERTAINMENT | ||||||||||||||
| Cash Account Records | ||||||||||||||
| May 1, 2021, to May 31, 2021 | ||||||||||||||
| Cash Balance | Cash Balance | |||||||||||||
| May 1, 2021 | + | Cash Receipts | Cash Disbursements | = | May 31, 2021 | |||||||||
| $5,450 | $11,190 | $11,200 | $5,440 | |||||||||||
| Cash Receipts | Cash Disbursements | |||||||||||||
| Date | Desc. | Amount | Date | Check# | Desc. | Amount | ||||||||
| 5/3 | Sales | $ | 1,290 | 5/7 | 471 | Legal fees | $ | 1,130 | ||||||
| 5/10 | Sales | 1,720 | 5/12 | 472 | Property tax | 1,500 | ||||||||
| 5/17 | Sales | 2,350 | 5/15 | 473 | Salaries | 3,430 | ||||||||
| 5/24 | Sales | 2,820 | 5/22 | 474 | Advertising | 1,330 | ||||||||
| 5/31 | Sales | 3,010 | 5/30 | 475 | Supplies | 380 | ||||||||
| 5/31 | 476 | Salaries | 3,430 | |||||||||||
| $ | 11,190 | $ | 11,200 | |||||||||||
| P.O. Box 162647 | Midwest Bank | Member FDIC | |||||||||||||||||||||||
| Bowlegs, OK 74830 | Looking Out For You | ||||||||||||||||||||||||
| (405) 369-CASH | |||||||||||||||||||||||||
| Account Holder: | Diaz Entertainment | Account Number: | 7772854360 | ||||||||||||||||||||||
| 124 Saddle Blvd, | |||||||||||||||||||||||||
| Bowlegs, OK 74830 | Statement Date: | May 31, 2021 | |||||||||||||||||||||||
| Account Summary | |||||||||||||||||||||||||
| Beginning Balance | Deposits and Credits | Withdrawals and Debits | Ending Balance | ||||||||||||||||||||||
| May 1, 2021 | NO. | Total | NO. | Total | May 31, 2021 | ||||||||||||||||||||
| $6,090 | 7 | $9,436 | 9 | $8,723 | $6,803 | ||||||||||||||||||||
| Account Details | |||||||||||||||||||||||||
| Deposits and Credits | Withdrawals and Debits | Daily Balance | |||||||||||||||||||||||
| Date | Amount | Desc. | Date | No. | Amount | Desc. | Date | Amount | |||||||||||||||||
| 5/4 | $ | 1,290 | DEP | 5/1 | 469 | $ | 380 | CHK | 5/1 | $ | 5,710 | ||||||||||||||
| 5/11 | 1,720 | DEP | 5/2 | 470 | 260 | CHK | 5/2 | 5,450 | |||||||||||||||||
| 5/18 | 2,350 | DEP | 5/9 | 471 | 1,130 | CHK | 5/4 | 6,740 | |||||||||||||||||
| 5/20 | 1,200 | NOTE | 5/11 | 230 | NSF | 5/9 | 5,610 | ||||||||||||||||||
| 5/20 | 43 | INT | 5/12 | 472 | 1,500 | CHK | 5/11 | 7,100 | |||||||||||||||||
| 5/25 | 2,820 | DEP | 5/18 | 473 | 3,430 | CHK | 5/12 | 5,600 | |||||||||||||||||
| 5/31 | 13 | INT | 5/20 | 430 | EFT | 5/18 | 4,520 | ||||||||||||||||||
| 5/25 | 474 | 1,330 | CHK | 5/20 | 5,333 | ||||||||||||||||||||
| 5/31 | 33 | SF | 5/25 | 6,823 | |||||||||||||||||||||
| $ | 9,436 | $ | 8,723 | 5/31 | $ | 6,803 | |||||||||||||||||||
| Desc. | DEP Customer deposit | INT Interest earned | SF Service fees | |||
| NOTE Note collected | CHK Customer check | NSF Nonsufficient funds | ||||
| EFT Electronic funds transfer |
Additional information:
- The difference in the beginning balances in the companys records and the bank statement relates to checks #469 and #470, which are outstanding as of April 30, 2021 (prior month).
- 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 2
2. Record the necessary cash adjustments. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Total entries to the same account together when entering in the journal entry carousel.)
3. 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.)
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BMW Brand Audit
Authors: Marion Maguire
1st Edition
3638653137, 978-3638653138
