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 May 31, 2021 $5,200 Cash Balance Cash May 1, 2021 - Receipts 55,330 $11,790 Cash Receipts Date Dese. 5/3 Sales 5/10 Sales 5/17 Sales 5/24 Sales 5/31 Sales Amount $ 1,410 1,840 2.470 2,940 3,130 Date 5/7 5/12 5/15 5/22 5/30 5/31 Cash Disbursements $11,920 Cash Disbursements Check Dese. 471 Legal fees 472 Property tax 473 Salaries 474 Advertising 475 Supplies 476 Salaries Amount $1,250 1,620 3,550 1.450 500 3,550 $11,920 $11,790 Member FDIC 7772854360 May 31, 2021 NO. Ending Balance May 31, 2021 $6,455 P.0. 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 Total $6,210 7 $9,940 9 $9,695 Account Details Deposits and Credits Withdrawals and Debits Date Amount Desc. Date No. Amount Desc. 5/4 $ 1,410 DEP 5/1 469 $ 500 CHK 5/11 1,840 DEP 5/2 470 380 CHK 5/18 2,470 DEP 5/9 471 1,250 CHK 5/20 1,200 NOTE 5/11 350 NSF 5/20 55 INT 5/12 472 1,620 CHK 5/25 2.940 DEP 5/18 473 3,550 CHK 5/31 25 INT 5/20 550 EFT 5/25 474 1.450 CHK 5/31 45 SP $ 9,940 $9.95 Daily Balance Date nount 5/1 $5,710 5/2 5,330 5/4 6,740 5/9 5,490 5/11 6,980 5/12 5,360 5/18 4,280 5/20 4.985 5/25 6,475 5/31 $6,455 Dese. DEP Customer deposit NOTE Note collected EFT Electronic funds transfer INT Interest earned CHK Customer check SP Service fees NSP 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 of 2 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 Book Bank's Cash Balance Per bank statement Terences Bank balance per reconciliation Company balance per reconciliation
