The cash records and bank statement for the month of May for Houdini Entertainment are shown below.

HOUDINI ENTERTAINMENT

Cash Account Records

May $1,2024,$ to May $31,2024$

Cash Balance May $1,2024+$ Cash Receipts $$ Cash Disbursements $=$ Cash Balance May $31,2024$

$$5,360$ $$11,640$ $$11,740$ $$5,260$

Cash Receipts Cash Disbursements

Date Description Amount Date Description Memo Amount

$5/3$ Sales $$1,3805/7$ DC Legal fees $$1,220$

$5/10$ Sales $1,8105/12$ DC Property tax $1,590$

$5/17$ Sales $2,4405/15$ DC Salaries $3,520$

$5/24$ Sales $2,9105/22$ DC Advertising $1,420$

$5/31$ Sales $3,1005/30$ CHK number $471$ Supplies $470$

$5/31$ CHK number $472$ Salaries $3,520$

$$11,640$ $$11,740$

P$.$O$.$ Box $162647$ Bowlegs, OK $74830$

$(405)369-$CASH Midwest Bank

Looking Out For You Member FDIC

Account Holder: Houdini Entertainment

$124$ Saddle Blvd$,$

Bowlegs, OK $74830$ Account Number: $7772854360$

Statement Date: May $31,2024$

Account Summary

Beginning Balance

May $1,2024$ Deposits and Credits Withdrawals and Debits Ending Balance

May $31,2024$

Number Total Number Total

$$6,1807$ $$9,8149$ $$9,452$ $$6,542$

Account Details

Deposits and Credits Withdrawals and Debits Daily Balance

Date Amount Description Date Number Amount Description Date Amount

$5/4$ $$1,380$ DEP $5/1469$ $$470$ CHK $5/1$ $$5,710$

$5/111,810$ DEP $5/2470350$ CHK $5/25,360$

$5/182,440$ DEP $5/71,220$ DC $5/46,740$

$5/201,200$ NOTE $5/11320$ NSF $5/95,520$

$5/2052$ INT $5/121,590$ DC $5/117,010$

$5/252,910$ DEP $5/153,520$ DC $5/125,420$

$5/3122$ INT $5/20520$ EFT $5/184,340$

$5/221,420$ DC $5/205,072$

$5/3142$ SF $5/256,562$

$$9,814$ $$9,4525/31$ $$6,542$

Description DEP Customer deposit INT Interest earned SF Service fees

NOTE Note collected CHK Customer check NSF Nonsufficient funds

EFT Electronic funds transfer DC Debit card

Additional information:

The difference in the beginning balances in the company$$s records and the bank statement relates to checks number $469$ and number $470,$ which are outstanding as of April $30,2024($prior month$).$

The bank made the EFT on May $20$ in error. The bank accidentally charged Houdini for payment that should have been made on another account.

Required:

$1.$ Prepare a bank reconciliation for Houdini's checking account on May $31,2024.$

$2.$ Record the necessary cash adjustments.