Problem 4-3A Prepare the bank reconciliation and record cash adjustments (LO4-5)
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The cash records and bank statement for the month of May for Diaz Entertainment are shown below.
Cash Account Records May 1, 2021, to May 31, 2021 Cash Balance May 31, 2021 $5,340 Cash Balance Cash May 1, 2021 + Receipts $5,400 $11,440 Cash Receipts Date Desc. 5/3 Sales 5/10 Sales 5/17 Sales 5/24 Sales 5/31 Sales Amount $ 1,340 1,770 2,400 2,870 3,060 Date 5/7 5/12 5/15 5/22 5/30 5/31 Cash Disbursements $11,500 Cash Disbursements Check Desc. 471 Legal fees 472 Property tax 473 Salaries Advertising 475 Supplies 476 Salaries Amount $ 1,180 1,550 3,480 1,380 430 3,480 $11,500 474 $11,440 Member FDIC 7772854360 May 31, 2021 Ending Balance May 31, 2021 $6,458 P.O. Box 162647 Midwest Bank Bowlegs, OK 74830 Looking Out For You (405) 369-CASH Account Holder: Diaz Entertainment Account Number: 124 Saddle Blvd, Bowlegs, OK 74830 Statement Date: Account Summary Withdrawals and Beginning Balance Deposits and Credits Debits May 1, 2021 NO. Total NO. Total $6,140 7 $9.446 9 $9,128 Account Details Deposits and Credits Withdrawals and Debits Date Amount Desc. Date No. Amount Dese. 5/4 $ 1,340 DEP 5/1 469 $ 430 CHK 5/11 1,770 DEP 5/2 470 310 CHK 5/18 2,400 DEP 5/9 471 1,180 CHK 5/20 1,000 NOTE 5/11 280 NSF 5/20 48 INT 5/12 472 1,550 CHK 5/25 2,870 DEP 5/18 473 3,480 CHK 5/31 18 INT 5/20 480 EFT 5/25 474 1,380 CHK 5/31 38 SE $ 9,446 $9,128 Daily Balance Date Amount 5/1 $5,710 5/2 5,400 5/4 6,740 5/9 5,560 5/11 7,050 5/12 5,500 5/18 4,420 5/20 4,988 5/25 6,478 5/31 $6,458 Desc. DEP Customer deposit NOTE Note collected EFT Electronic funds transfer INT Interest earned CHK Customer check SF Service fees NSF Nonsufficient funds 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) DIAZ ENTERTAINMENT Bank Reconciliation May 31, 2021 Company's Cash Balance Per general ledger Bank's Cash Balance Per bank statement Bank balance per reconciliation Company balance per reconciliation 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 th first account field. Total entries to the same account together when entering in the journal entry carousel.) View transaction list Journal entry worksheet 1 2 Record the amounts that increase cash. Note: Enter debits before credits Transaction General Journal Dobit Credit 1 Record entry Clear entry View general Journal View transaction list Journal entry worksheet 1 2 Record the amounts that decrease cash. Note: Enter debits before credits. Transaction General Journal Debit Credit 2 Record entry Clear entry View general Journal
