Required information 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. Cash Balance Cash DIAZ ENTERTAINMENT Cash Account Records May 1, 2021, to May 31, 2021 - Cash Disbursements $11,800 Cash Disbursements Desc. May 1, 2021 + $5,350 Receipts $11,690 Cash Receipts Date Desc. Amount Date Check# 5/3 Sales $ 1,390 5/7 471 5/10 Sales 1,820 5/12 472 5/17 Sales 2,450 5/15 473 5/24 Sales 2,920 5/22 474 5/31 Sales 3,110 5/30 475 Supplies 5/31 476 Salaries $11,690 Legal fees Property tax Salaries Advertising Cash Balance May 31, 2021 $5,240 Amount $ 1,230 1,600 3,530 1,430 480 3,530 $11,800 P.O. Box 162647 Bowlegs, OK 74830 (405) 369-CASH Account Holder: Diaz Entertainment 124 Saddle Blvd, Bowlegs, OK 74830 Midwest Bank Looking Out For You Member FDIC Account Number: Statement Date: 7772854360 May 31, 2021 Account Summary Beginning Balance May 1, 2021 $6,190 Deposits and Credits Deposits and Credits Withdrawals and Debits NO. Total 7 $9,656 NO. 9 Total $9,533 Ending Balance May 31, 2021 $6,313 Account Details Withdrawals and Debits Daily Balance Date Amount Desc. Date No. Amount Desc. Date Amount 5/4 $ 1,390 DEP 5/1 469 $ 480 CHK 5/1 $5,710 5/11 1,820 DEP 5/2 470 360 CHK 5/2 5,350 5/18 2,450 DEP 5/9 471 1,230 CHK 5/4 6,740 5/20 1,000 NOTE 5/11 330 NSF 5/9 5,510 5/20 53 INT 5/12 472 1,600 CHK 5/11 7,000 5/25 5/31 2,920 DEP 5/18 473 3,530 CHK 5/12 5,400 23 INT 5/20 530 EFT 5/18 4,320 5/25 5/31 474 1,430 CHK 5/20 4,843 43 SF 5/25 6,333 $ 9,656 $9,533 5/31 $6,313 Desc. DEP Customer deposit NOTE Note collected EFT Electronic funds transfer INT Interest earned SF Service fees CHK Customer check 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.) Bank's Cash Balance DIAZ ENTERTAINMENT Bank Reconciliation May 31, 2021 Company's Cash Balance