Question
The cash records and bank statement for the month of May for Diaz Entertainment are shown below. DIAZ ENTERTAINMENT Cash Account Records May 1, 2018,
The cash records and bank statement for the month of May for Diaz Entertainment are shown below.
| DIAZ ENTERTAINMENT Cash Account Records May 1, 2018, to May 31, 2018 | |||||||
| Cash Balance May 1, 2018 | + | Deposits | Checks | = | Cash Balance May 31, 2018 | ||
| $5,380 | $11,540 | $11,620 | $5,300 | ||||
| Deposits | Checks | ||||||
| Date | Desc. | Amount | Date | No. | Desc. | Amount | |
| 5/3 | Sales | $ 1,360 | 5/7 | 471 | Legal fees | $ 1,200 | |
| 5/10 | Sales | 1,790 | 5/12 | 472 | Property tax | 1,570 | |
| 5/17 | Sales | 2,420 | 5/15 | 473 | Salaries | 3,500 | |
| 5/24 | Sales | 2,890 | 5/22 | 474 | Advertising | 1,400 | |
| 5/31 | Sales | 3,080 | 5/30 | 475 | Supplies | 450 | |
| 5/31 | 476 | Salaries | 3,500 | ||||
| $11,540 | $11,620 | ||||||
| P.O. Box 162647 Bowlegs, OK 74830 (405) 369-CASH | MIDWEST BANK Looking Out For You | Member FDIC | ||||||
| Account Holder: | Diaz Entertainment 124 Saddle Blvd. Bowlegs, OK 74830 | Account Number: Statement Date: | 7772854360 May 31, 2018 | |||||
| Beginning Balance | Deposits and Credits | Withdrawals and Debits | Ending Balance | ||||||
| May 1, 2018 | No. | Total | No. | Total | May 31, 2018 | ||||
| $ 6,160 | 7 | $ 9,530 | 9 | $ 9,290 | $ 6,400 | ||||
| Deposits and Credits | Withdrawals and Debits | Daily Balance | ||||||||
| Date | Amount | Desc. | Date | No. | Amount | Desc. | Date | Amount |
| 5/4 | $ 1,360 | DEP | 5/1 | 469 | $ 450 | CHK | 5/1 | $ 5,710 |
| 5/11 | 1,790 | DEP | 5/2 | 470 | 330 | CHK | 5/2 | 5,380 |
| 5/18 | 2,420 | DEP | 5/9 | 471 | 1,200 | CHK | 5/4 | 6,740 |
| 5/20 | 1,000 | NOTE | 5/11 | 300 | NSF | 5/9 | 5,540 | |
| 5/20 | 50 | INT | 5/12 | 472 | 1,570 | CHK | 5/11 | 7,030 |
| 5/25 | 2,890 | DEP | 5/18 | 473 | 3,500 | CHK | 5/12 | 5,460 |
| 5/31 | 20 | INT | 5/20 | 500 | EFT | 5/18 | 4,380 | |
| 5/25 | 474 | 1,400 | CHK | 5/20 | 4,930 | |||
| 5/31 | 40 | SF | 5/25 | 6,420 | ||||
| 5/31 | $ 6,400 | |||||||
| $ 9,530 | $9,290 | |||||||
Desc. DEP Customer deposit INT Interest earned SF Service fees NOTE Note collected CHK Customer check NSF Nonsufficient funds EFT Electronic funds transfer
Additional information:
a. The difference in the beginning balances in the companys records and the bank statement relates to checks #469 and #470, which are outstanding as of April 30, 2018 (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.
1. Prepare a bank reconciliation for Diaz's checking account on May 31, 2018.
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