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 | |||||||||
| $5,290 | $11,990 | $12,160 | $5,120 | |||||||||||
| Cash Receipts | Cash Disbursements | |||||||||||||
| Date | Desc. | Amount | Date | Check# | Desc. | Amount | ||||||||
| 5/3 | Sales | $ | 1,450 | 5/7 | 471 | Legal fees | $ | 1,290 | ||||||
| 5/10 | Sales | 1,880 | 5/12 | 472 | Property tax | 1,660 | ||||||||
| 5/17 | Sales | 2,510 | 5/15 | 473 | Salaries | 3,590 | ||||||||
| 5/24 | Sales | 2,980 | 5/22 | 474 | Advertising | 1,490 | ||||||||
| 5/31 | Sales | 3,170 | 5/30 | 475 | Supplies | 540 | ||||||||
| 5/31 | 476 | Salaries | 3,590 | |||||||||||
| $ | 11,990 | $ | 12,160 | |||||||||||
| 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 | ||||||||||||||||||||
| $6,250 | 7 | $9,908 | 9 | $10,019 | $6,139 | ||||||||||||||||||||
| Account Details | |||||||||||||||||||||||||
| Deposits and Credits | Withdrawals and Debits | Daily Balance | |||||||||||||||||||||||
| Date | Amount | Desc. | Date | No. | Amount | Desc. | Date | Amount | |||||||||||||||||
| 5/4 | $ | 1,450 | DEP | 5/1 | 469 | $ | 540 | CHK | 5/1 | $ | 5,710 | ||||||||||||||
| 5/11 | 1,880 | DEP | 5/2 | 470 | 420 | CHK | 5/2 | 5,290 | |||||||||||||||||
| 5/18 | 2,510 | DEP | 5/9 | 471 | 1,290 | CHK | 5/4 | 6,740 | |||||||||||||||||
| 5/20 | 1,000 | NOTE | 5/11 | 390 | NSF | 5/9 | 5,450 | ||||||||||||||||||
| 5/20 | 59 | INT | 5/12 | 472 | 1,660 | CHK | 5/11 | 6,940 | |||||||||||||||||
| 5/25 | 2,980 | DEP | 5/18 | 473 | 3,590 | CHK | 5/12 | 5,280 | |||||||||||||||||
| 5/31 | 29 | INT | 5/20 | 590 | EFT | 5/18 | 4,200 | ||||||||||||||||||
| 5/25 | 474 | 1,490 | CHK | 5/20 | 4,669 | ||||||||||||||||||||
| 5/31 | 49 | SF | 5/25 | 6,159 | |||||||||||||||||||||
| $ | 9,908 | $ | 10,019 | 5/31 | $ | 6,139 | |||||||||||||||||||
| 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.)
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Introduction To Mathematical Finance Discrete Time Models
Authors: Stanley R. Pliska
1st Edition
1557869456, 9781557869456
