Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Required information [The following information applies to the questions displayed below.) The cash records and bank statement for the month of May for Diaz Entertainment
Required information [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 May 31, 2021 $5,120 DIAZ ENTERTAINMENT Cash Account Records May 1, 2021, to May 31, 2021 Cash Balance May 1, Cash Cash 2021 + Receipts - Disbursements = $5,290 $11,990 $12,160 Cash Receipts Cash Disbursements Date Desc. Amount Date Check# Desc. 5/3 Sales $ 1,450 5/7 471 Legal fees 5/10 Sales 1,880 5/12 Property tax 5/17 Sales 2,510 5/15 473 Salaries 5/24 Sales 2,9805/22 474 Advertising 5/31 Sales 3,170 5/30 475 Supplies 5/31 Salaries $11,990 472 Amount $ 1,290 1,660 3,590 1,490 540 3,590 $12,160 476 Member FDIC 7772854360 May 31, 2021 P.O. Box Midwest Bank 162647 Bowlegs, OK 74830 Looking Out For You (405) 369-CASH Account Diaz Entertainment Account Number: Holder: 124 Saddle Blvd, Bowlegs, OK 74830 Statement Date: Account Summary Beginning Withdrawals and Balance Deposits and Credits Debits May 1, 2021 NO. Total NO. Total $6,250 7 $9,908 9 $10,019 Account Details Deposits and Credits Withdrawals and Debits Date Amount Desc. Date No. Amount Desc. 5/4 $1,450 DEP 5/1 469 $ 540 CHK 5/11 1,880 DEP 5/2 470 420 CHK 5/18 2,510 DEP 5/9 471 1,290 CHK 5/20 1,000 NOTE 5/11 390 NSF 5/20 59 INT 5/12 472 1,660 CHK 5/25 2,980 DEP 5/18 473 3,590 CHK 5/31 29 INT 5/20 590 EFT 5/25 474 1,490 CHK 5/31 SF $9,908 $10,019 Ending Balance May 31, 2021 $6,139 Daily Balance Date Amount 5/1 $5,710 5/2 5,290 5/4 6,740 5/9 5,450 5/11 6,940 5/12 5,280 5/18 4,200 5/20 4,669 5/25 6,159 5/31 $6,139 $6,139 CHK $6,250 $9,908 9 $10,019 Account Details Deposits and Credits Withdrawals and Debits Date Amount Desc. Date No. Amount Desc. 5/4 $1,450 DEP5/ 1 469 $ 540 5/11 1,880 DEP 5/2 470 420 CHK 5/18 2,510 DEP 5/9 471 1,290 CHK 5/20 1,000 NOTE 5/11 390 NSF 5/2059 INT 5/12 472 1,660 CHK | 5/25 2,980 DEP 5/18 473 3,590 CHK 5/31 29 INT 5/20 590 EFT 5/25 474 1,490 CHK 5/31 49 SF $9,908 $10,019 Daily Balance Date Amount 5/1 $5,710 5/2 5,290 5/4 6,740 5/9 5,450 5/11 6,940 5/12 5,280 5/18 4,200 5/20 4,669 5/25 6,159 5/31 $6,139 Desc. DEP Customer deposit INT Interest earned CHK Customer check SF Service fees NSF Nonsufficient funds NOTE Note collected EFT Electronic funds transfer 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. Required: 1. Prepare a bank reconciliation for Diaz's checking account on May 31, 2021. (Amounts to be deducted should be ndicated with a minus sign. Total entries to the same account together when entering in the bank reconciliation.) DIAZ ENTERTAINMENT Bank Reconciliation May 31, 2021 Bank's Cash Balance Company's Cash Balance Per bank statement Per general ledger Bank balance per reconciliation Company balance per reconciliation
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started