Problem 4-3A Prepare the bank reconciliation and record cash adjustments (LO4-5) Skip to question [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 $5,480 $11,040 $11,020 $5,500 Cash Receipts Cash Disbursements Date Desc. Amount Date Check# Desc. Amount 5/3 Sales $ 1,260 5/7 471 Legal fees $ 1,100 5/10 Sales 1,690 5/12 472 Property tax 1,470 5/17 Sales 2,320 5/15 473 Salaries 3,400 5/24 Sales 2,790 5/22 474 Advertising 1,300 5/31 Sales 2,980 5/30 475 Supplies 350 5/31 476 Salaries 3,400 $ 11,040 $ 11,020 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 $6,060 7 $9,310 9 $8,480 $6,890 Account Details Deposits and Credits Withdrawals and Debits Daily Balance Date Amount Desc. Date No. Amount Desc. Date Amount 5/4 $ 1,260 DEP 5/1 469 $ 350 CHK 5/1 $ 5,710 5/11 1,690 DEP 5/2 470 230 CHK 5/2 5,480 5/18 2,320 DEP 5/9 471 1,100 CHK 5/4 6,740 5/20 1,200 NOTE 5/11 200 NSF 5/9 5,640 5/20 40 INT 5/12 472 1,470 CHK 5/11 7,130 5/25 2,790 DEP 5/18 473 3,400 CHK 5/12 5,660 5/31 10 INT 5/20 400 EFT 5/18 4,580 5/25 474 1,300 CHK 5/20 5,420 5/31 30 SF 5/25 6,910 $ 9,310 $ 8,480 5/31 $ 6,890 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.

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.)