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, 2023 Cash Balance Cash Balance May 31, 2021 $5,440 May 1, 2021 + Cash Receipts 55,450 $11,190 Cash Receipts Date Desc. Amount 5/3 Sales $ 1,290 5/10 Sales 1,720 5/17 Sales 2,350 5/24 Sales 2,828 5/31 Sales 3,10 Date 5/7 5/12 5/15 5/22 5/30 5/31 Cash Disbursements $11, 20e Cash Disbursements Check Desc. 471 Legal fees 472 Property tax 473 Salaries 474 Advertising 475 Supplies 476 Salaries Amount $ 1,130 1, see 3,438 1,330 3,430 $11,200 $11,190 Member FDIC Midwest Bank Looking Out For You P.O. Box 162647 Bowlegs, OK 74830 (405) 369-CASH Account Holder: 7772854360 May 31, 2021 Diaz Entertainment Account Number: 124 Saddle Blvd, Bowlegs, OK 74830 Statement Date: Account Summary Deposits and Credits withdrawals and Debits NO. Total NO. Total 7 $9,436 9 $8,723 Account Details Beginning Balance May 1, 2021 $6,098 Ending Balance May 31, 2021 $6,883 C Member FOIC 7772894368 May 31, 2021 Ending Balance May 31, 2821 $6,883 P.O.Box 162647 Bowlegs, OK 74838 Midwest Bank (485) 369-CASH Looking Out For You Account Holder: Diaz Entertainment 124 Saddle Blvd, Account Number: Bowlegs, OK 74830 Statement Date: Account Summary Beginning Balance Deposits and Credits May 1, 2021 withdrawals and Debits NO. Total NO. $6,890 Total 7 $9,436 9 $8,723 Account Details Deposits and Credits Withdrawals and Debits Date Amount Desc. Date No. Amount Desc 5/4 $ 1,290 DEP 5/1 469 $ 380 CHK 5/11 1,720 DEP 5/2 470 260 CHK 5/18 2,350 DEP 5/9 471 1,130 CHK 5/20 1,200 NOTE 5/11 230 NSF 5/20 43 INT 5/12 472 1, see CHK 5/25 2,820 DEP 5/18 473 3,430 5/31 13 INT 5/20 43e 5/25 474 1,330 CHK 5/31 33 SF $ 9,436 $8,723 Daily Balance Date Amount 5/1 55,719 5/2 5,45 5/4 6,740 5/9 5,618 5/11 7,109 5/12 5,6ee 5/18 4,52e 5/20 5,333 5/25 6,823 5/31 $6,883 CHK EFT 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. the bank statement relates to checks 2469 and 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 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 6,803 Per general ledger Bank's Cash Balance Per bank statement $ Deposits outstanding Bank error Checks outstanding Bank balance per reconciliation Company balance per reconciliation 5 6
