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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,
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 1, 2021 | + | Cash Receipts | Cash Disbursements | = | May 31, 2021 | ||||||||||
| $5,280 | $12,040 | $12,220 | $5,100 | ||||||||||||
| Cash Receipts | Cash Disbursements | ||||||||||||||
| Date | Desc. | Amount | Date | Check# | Desc. | Amount | |||||||||
| 5/3 | Sales | $ | 1,460 | 5/7 | 471 | Legal fees | $ | 1,300 | |||||||
| 5/10 | Sales | 1,890 | 5/12 | 472 | Property tax | 1,670 | |||||||||
| 5/17 | Sales | 2,520 | 5/15 | 473 | Salaries | 3,600 | |||||||||
| 5/24 | Sales | 2,990 | 5/22 | 474 | Advertising | 1,500 | |||||||||
| 5/31 | Sales | 3,180 | 5/30 | 475 | Supplies | 550 | |||||||||
| 5/31 | 476 | Salaries | 3,600 | ||||||||||||
| $ | 12,040 | $ | 12,220 | ||||||||||||
| P.O. Box 162647 | Midwest Bank | Member FDIC | |||||||||||||||||||||||
| Bowlegs, OK 74830 | Looking Out For You | ||||||||||||||||||||||||
| (405) 369-CASH | |||||||||||||||||||||||||
| Account Holder: | Diaz Entertainment | Account Number: | 7772854360 | ||||||||||||||||||||||
| 124 Saddle Blvd, | |||||||||||||||||||||||||
| Bowlegs, OK 74830 | Statement Date: | May 31, 2021 | |||||||||||||||||||||||
| Account Summary | |||||||||||||||||||||||||
| Beginning Balance | Deposits and Credits | Withdrawals and Debits | Ending Balance | ||||||||||||||||||||||
| May 1, 2021 | NO. | Total | NO. | Total | May 31, 2021 | ||||||||||||||||||||
| $6,260 | 7 | $10,050 | 9 | $10,100 | $6,210 | ||||||||||||||||||||
| Account Details | |||||||||||||||||||||||||
| Deposits and Credits | Withdrawals and Debits | Daily Balance | |||||||||||||||||||||||
| Date | Amount | Desc. | Date | No. | Amount | Desc. | Date | Amount | |||||||||||||||||
| 5/4 | $ | 1,460 | DEP | 5/1 | 469 | $ | 550 | CHK | 5/1 | $ | 5,710 | ||||||||||||||
| 5/11 | 1,890 | DEP | 5/2 | 470 | 430 | CHK | 5/2 | 5,280 | |||||||||||||||||
| 5/18 | 2,520 | DEP | 5/9 | 471 | 1,300 | CHK | 5/4 | 6,740 | |||||||||||||||||
| 5/20 | 1,100 | NOTE | 5/11 | 400 | NSF | 5/9 | 5,440 | ||||||||||||||||||
| 5/20 | 60 | INT | 5/12 | 472 | 1,670 | CHK | 5/11 | 6,930 | |||||||||||||||||
| 5/25 | 2,990 | DEP | 5/18 | 473 | 3,600 | CHK | 5/12 | 5,260 | |||||||||||||||||
| 5/31 | 30 | INT | 5/20 | 600 | EFT | 5/18 | 4,180 | ||||||||||||||||||
| 5/25 | 474 | 1,500 | CHK | 5/20 | 4,740 | ||||||||||||||||||||
| 5/31 | 50 | SF | 5/25 | 6,230 | |||||||||||||||||||||
| $ | 10,050 | $ | 10,100 | 5/31 | $ | 6,210 | |||||||||||||||||||
| 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:
- 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, 2021 (prior month).
- 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, 2021.
2. Record the necessary cash adjustments.
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