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. DIAZ ENTERTAINMENT Cash Account Records May 1, 2021, to May 31, 2021 Cash Balance Cash Balance May 31, 2021 $5,420 May 1, 2021 + Cash Receipts $5,440 $11, 240 Cash Receipts Date Desc. Amount 5/3 Sales $ 1,300 5/10 Sales 1,730 5/17 Sales 2,360 5/24 Sales 2,830 5/31 Sales 3,020 Date 5/7 5/12 5/15 5/22 5/30 5/31 Cash Disbursements $11,260 Cash Disbursements Check# Desc. 471 Legal fees 472 Property tax 473 Salaries 474 Advertising 475 Supplies 476 Salaries Amount $ 1,140 1,510 3,440 1,340 390 3,440 $11,260 $11, 240 Member FDIC 7772854360 May 31, 2021 Ending Balance May 31, 2021 $6,674 7 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 $6,100 $9,378 9 $8,804 Account Details Deposits and Credits Withdrawals and Debits Date Amount Desc. Date No. Amount Desc. 5/4 $ 1,300 DEP 5/1 469 $ 390 CHK 5/11 1,730 DEP 5/2 470 270 CHK 5/18 2,360 DEP 5/9 471 1,140 CHK 5/20 1,100 NOTE 5/11 240 NSF 5/20 44 INT 5/12 472 1,510 CHK 5/25 2,830 DEP 5/18 473 3,440 CHK 5/31 14 INT 5/20 440 EFT 5/25 474 1,340 CHK 5/31 34 SF $ 9,378 $8,804 Daily Balance Date Amount 5/1 $5,710 5/2 5,440 5/4 6,740 5/9 5,600 5/11 7,090 5/12 5,580 5/18 4,500 5/20 5,204 5/25 6,694 5/31 $6,674 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. 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.) DIAZ ENTERTAINMENT Bank Reconciliation May 31, 2021 Company's Cash Balance 6,674 Per general ledger 3,020 Bank's Cash Balance Per bank statement S Deposits outstanding Checks outstanding Bank balance per reconciliation Company balance per reconciliation 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. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal 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 Record the amounts that decrease cash. Note: Enter debits before credits. Transaction General Journal Debit Credit 2 Record entry Clear entry View general journal