Required information Problem 4-3A Prepare the bank reconciliation and record cash adjustments (L04-5) [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 31, 2021 $5,460 May 1, 2021 + Cash Receipts $5,460 $11,140 Cash Receipts Date Desc. Amount 5/3 Sales $ 1,280 5/10 Sales 1,710 5/17 Sales 2,340 5/24 Sales 2,810 5/31 Sales 3,000 Date 5/7 5/12 5/15 5/22 5/30 5/31 Cash Disbursements $11,140 Cash Disbursements Check# Desc. 471 Legal fees 472 Property tax 473 Salaries 474 Advertising 475 Supplies 476 Salaries Amount $ 1,120 1,490 3,420 1,320 370 3,420 $11,140 $11,140 Member FDIC 7772854360 May 31, 2021 P.O. Box 162647 Midwest Bank Bowlegs, OK 74830 Looking Out For You (495) 369 -CASH Account Holder: Diaz Entertainment Account Number: 124 Saddle Blvd, Bowlegs, OK 74830 Statement Date: Account Summary Beginning Balance Deposits and Credits withdrawals and Debits May 1, 2021 NO Total NO. Total $6,080 7 $9,194 9 $8,642 Account Details Deposits and Credits withdrawals and Debits Date Amount Desc Date No. Amount Desc 5/4 $ 1,200 DEP 5/1 469 $ 370 5/11 CHK 1,710 DEP 5/2 470 250 5/18 CHK 2,340 DEP 5/9 471 1.12 CHK 5/20 1.000 NOTE 5/11 220 NSF Ending Balance May 31, 2021 $6,632 Daily Balance Date Amount 5/1 $5,719 5/2 5,460 5/4 6,740 5/9 5,620 ht >11, 140 >11,140 Member FDIC 7772854360 May 31, 2021 Ending Balance May 31, 2021 $6,632 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 Beginning Balance Deposits and Credits Withdrawals and Debits May 1, 2021 NO. Total NO. Total $6,888 7 $9, 194 9 $8,642 Account Details Deposits and Credits Withdrawals and Debits Date Amount Desc. Date No. Amount Desc. 5/4 $ 1,280 DEP 5/1 469 $ 370 CHK 5/11 1,710 DEP 5/2 470 25e CHK 5/18 2,340 DEP 5/9 471 1,120 CHK 5/20 1,000 NOTE 5/11 220 NSF 5/2e 42 INT 5/12 1,490 CHK 5/25 2,810 DEP 5/18 3,420 CHK 5/31 12 INT 5/20 420 EFT 5/25 474 1,320 CHK 5/31 32 SF $9,194 $8,642 Daily Balance Date Amount 5/1 $5,710 5/2 5,460 5/4 6,740 5/9 5,620 5/11 7, 110 5/12 5,62e 5/18 4,548 5/2e 5,162 5/25 6,652 5/31 $6,632 472 473 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 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.) View transaction list Journal entry worksheet 1 2 Record the amounts that increase cash. inces Note: Enter debits before credits Transaction General Journal Debit Credit 1 Record entry Clear entry View general Journal 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.) View transaction list Journal entry worksheet 1 2 Record the amounts that decrease cash. es Note: Enter debits before credits General Journal Debit Transaction 2 Credit Record entry Clear entry View general Journal